Nifty Positive Above 6020 & Negative Below 5960 - Consortium

Yesterday's closing was not great. It looked in the morning that it would be another flat day for the market, however, towards the end, the market started coming off quite a bit. The Nifty went down all the way to about 5960, but managed to close around 5975. So, there was yet another closing below 6000 after reclaiming that level. The breadth was also quite poor. So, the broader market has not performed well either.

A lot of large cap names disappointed, like BHEL, ITC, TCS, Tata Steel. Hero Motors and Bajaj Auto also had poor performance today. In the last 30 minutes, there was a report that the Oil Ministry is considering the large industrial consumers or buyers paying market rates for diesel. That news development saw oil marketing companies (OMCs) move up quite sharply. On the other hand, cement companies correcte10.5d quite a bit because they would have to pay much higher rates for diesel if that were to come through.On the winning side it's Tata Motors that stood out like a lone star, there was a 4-5 % rally in that stock alongwith a series of upgrades on their international business. On the mid-caps, there were a couple of disasters like Arshiya International which plunged despite comments from the management on the contrary. The market reacted to reports of corporate misgovernance.

Kingfisher had a bad day, Renuka, Reliance Communications (RCom), Bhushan Steel and Pipavav where other names which did not do very well at all. Suzlon, GVK and Punj Llyod from the infrastructure related space did well. Dish TV had a good day and stocks like SKS Micro, HDIL and Kolte-Patil were also up. Asian markets closed mostly higher, with the Japanese shares staging a smart recovery after a weak start. The Nikkei was up 0.70% and the Hang Seng and the rose ~0.50% apiece.

For the day coming by Indian markets are expected to open on positive note as global cues are relative constructive. Asian shares are trading higher after Chinese trade in December showed a rebound. However, lately some sort nervousness ahead of results has crept in the markets. Markets are unable to take on 6000 level decisively and are circling around that level. Near term triggers for the market are IIP data and inflation numbers besides corporate results. Also some rate cut is expected in Jan 29th monetary policy. Moreover, pro - reformist approach of the govt. is keeping hopes alive. Nifty immediate support lies at 5960 and then at 5935 and 5900. On the upside resistance lies at 6010. Nifty will give buy trigger only if 6020 is taken out, that is yesterday's swing high.

Source : Equity Bulls

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