Nifty Trading Range 6125-6050 - Consortium

Market bounced back after a gap of last two days. Sensex gained nearly 1% (up 180 points) to close at 20104 after touching day's low of 19928. BSE Mid-cap surged nearly 2% after decline of over 4% in the last two preceding days. Many mid-cap stocks witnessed smart rally like Suzlon (up 17%), HDIL (up 10%), RCOM (up 8%), REC, Unitech, Andhra Bank, IVRCL, GIC Housing etc surged by 5-7%. There was huge short covering in the market on expectation that RBI will cut interest rate. Moreover better than expected Maruti quarterly results and rally in the global market boosted market sentiment.

Nikkei gained nearly 3% longest gained in 40 years. European market surged to 23-month high. PSU Banking stocks witnessed smart rally from intra-day low on expectation that RBI may cut interest rate. Oriental Bank has gained by 5% to close at Rs331 after touching day's low of Rs301 after the quarterly result. Others like SBI, Bank of India, Bank of Baroda, Union Bank, PNB, Union Bank gained by 3-5% each. Realty stocks witnessed biggest gainer today (Index up 4.4%). DLF has gained by 3% to close at Rs360. Others like India Bull Real, Prestige and Godrej Property gained by 3-4%.

Auto stocks witnessed fresh buying (Index up 2.2%). Tata Motors gained by 3% to close at Rs301. Maruti has gained by 4% to close at Rs1599. Others like M&M, Bajaj Auto and Ashok Leyland gained by 2-3%. Metal stocks witnessed fresh buying (Index up 1.7%). Hindalco gained over 2% to close at Rs116.5 after touching day's low of Rs112. Others like Jindal Steel, JSW Steel and Sterlite have gained by 2-3% each.Nifty January future closed at 6078 up 59 points. Nifty Futures closed at a premium of 4 points.

Nifty Jan 6200 call saw a decrease of 2.06 lac with total OI at 95.04 lac. Nifty Jan 6100 call saw a decrease of 17.02 lac in OI and its total OI base stands at 67.08 lac. Nifty Jan 5900 Put saw a slight increase of 0.06lac OI and its total OI stands at 78.08. Nifty Jan 6000 Put saw an increase of 17.72 lac and its total OI stands at 85.63 lac. This suggests that floor for Nifty exists at 5900-6000 level and headwinds on the upside should now come around the level of 6200.For the day coming by, global cues are decent.

Indian markets are expected to open marginally positive. Focus will be on interest sensitive stocks. Nifty is likely to face resistance around 6000 - 6125 range. Support lies at 6050 - 6075 level. Volatility may remain high as traders start rolling over positions in the futures & options (F&O) segment from the near month January 2013 series to February 2013 series.

Source : Equity Bulls

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