Indian Markets consolidating - Consortium

The key Indian stock indices closed higher for a third successive session on Thursday, with the NSE Nifty closing above 6,000 for the first time since January 2011, as investors remained upbeat about the prospects for the Indian economy and corporate earnings. Sentiment was partly buoyed by encouraging data out of China and the US over the past few days. The passing of the fiscal cliff deal by the US Congress has also boosted the global risk-on trade. FII inflows into the Indian stock markets continue to be strong amid hope of a recovery in the GDP growth in FY14 compared to FY13.

The BSE Sensex was up 0.26% while the NSE Nifty gained 0.27%.The broader indices out-performed their Large-Cap peers today. The BSE Mid-Cap Index was up 0.80% and the BSE Small-Cap index advanced 0.90%.The BSE Oil & Gas index was the top gainer (1.40%) followed by Teck (1.30%), IT (1.10%) and Realty (1.0%). The BSE PSU and Metal indices gained modestly. The BSE FMCG, Consumer Durables and Capital Goods indexes closed lower.In terms of index constituents, Dr. Reddy's, Bharti Airtel, ONGC, RIL, Infosys, TCS, Power Grid and Cairn India were the biggest gainers in the Sensex and Nifty. Tata Power, PNB, Sun Pharma, Lupin and Hero MotoCorp were the notable losers in the two main indices.

Asian markets closed higher, with Australian shares hitting a 20-month high while the Hang Seng touched a 19-month peak. Markets in Japan and China were shut for extended New Year holiday. The Hang Seng was up 0.40% while the Straits Times rose by 0.70%.

For the day coming by, Indian markets may consolidate after three straight days of gains. However, basic building blocks as far as India in concerned are intact. Liquidity remains supportive with FIIs appetite for Indian equities not diminishing as of now. Global cues are calm with US Fed indicating that bond buying may end in 6-12 months.

Asian markets too are consolidating after US hawkish comments except Japan which opened after holidays and adjusting the cliff rally.

Mapping options data, Nifty Jan futures settled at a premium of 30 as against a premium of 42 in the previous session. In Jan series for Nifty, highest Call OI is at 6200 strike and highest Put OI is at 5800 strike suggesting this brad range. Spot Nifty support for today lies at 5986 & 5980 and resistance at 6017 and 6030. We still believe buy on dips remains the preferred strategy as all the trend remains up.

Source : Equity Bulls

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