Nifty Resistance at 6070 - Consortium

Sensex gained marginally by 45 points to close above 20k. Nifty gained 6 points.However border market was in negative. BSE mid-cap slipped nearly 1% and most of the sectors like Auto, PSU banks, Realty and Metal stocks declined sharply. However media stocks witnessed smart rally after Zee and Sun TV reported better than expected quarterly results.

Telecom stocks witnessed smart rally after both Idea and Bharti call price. Bharti surged by 5% to close at Rs368. The market was highly volatile. After a flat opening, Nifty touched day's high of 6069.80and low of 6021.15. Traders were booking profit ahead quarterly results and RBI credit policy. PSU Banks stocks witnessed profit booking after Syndicate Bank reported lower than expected Q3 result and RBI governor says inflation rate even now is very high and inflation control is priority.

Market expects that RBI may not cut interest rate concern of higher inflation. Syndicate Bank declined by 5% to close at Rs132. Others like Dena Bank, Andhra Bank, Central Bank and Canara Bank declined by 2-4%. Asian stocks fell, with Japanese shares leading declines after the Bank of Japan opted to hold off on fresh monetary stimulus until next year.

Realty stocks witnessed profit booking (Index down 2.3%). HDIL declined by 14% to close at Rs96. Managing Director of HDIL sold 5m HDIL shares. Others like DLF and India Bull Real declined by 1% each.

Tech stocks witnessed profit booking (Index down 1%). HCL Tech declined by 3% to close at Rs676. Both Tech Mahindra and TCS declined by 1% each. However Infosys and Wipro gained marginally.Over all, it was a mixed day of trade. Bounce back in the large caps but mid-caps continue to underperform which remains a worry area for the market.

For the day coming by markets are expected to trade choppy withselling witnessing in higher levels. We remain cautious in the markets in the short term. Nifty yesterday formed a Doji pattern and has settled marginally above its previous close indicating uncertainty at these levels.In Jan series for Nifty, Highest Call OI is at 6200 strike with 9.2m shs up 0.3m shs and highest Put OI is at 5900 strike with 8.4m shs up 0.4m shs which has changed from 6000 (OI at 8.3m shs down 0.5m shs). Nifty 6000 Jan CE OI decreased by 0.3m shs to 3.5m shs and 6100 Jan PE OI decreased by 0.3m shs to 3.1m shs.

Source : Equity Bulls

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