Eye On Inflation, Markets to be volatile - Consortium

Nifty gained marginally by 10 points to close at 5933. Market pared its gain from the intra-day high on lower than expected corporate results. Moreover, there was fear that pressure on King Fisher Airlines by SBI and other PSU banks could put further pressure on asset quality, which dragged the market sentiment.

Nifty touched day's high of 5969.50 and low of 5932.95. SBI nosedived by 2% to close at Rs2251 after touching day's high of Rs2323. King Fisher's parent companyUnited Spirits fell by 5% to close at Rs1865.

Metal stocks witnessed sharp declines due to weak global price and lower than expected results by SAIL and Jindal Steel.

Auto major Tata Motor surged by 3% due to impressive JLR monthly sales. Tech and Oil & Gas stocks witnessed fresh buying. Metal stocks witnessed sharp declined (Index down 1.2%). SAIL slipped by 3% to close at Rs79. Others like Hindalco, Sterlite, JSW Steel and Tata Steel declined by 2-3%.

Banking stocks witnessed mixed bag (Index down 0.2%). ICICI Bank gained by 1% to close at Rs1142. Allahabad Bank declined by 4% to close at Rs144. Others like Bank of Baroda, Bank of India, Oriental Bank and PNB declined by 1-2% each.

Tech stocks witnessed fresh buying (Index up 1.3%). HCL Tech surged by 4% to close at Rs707. Others like TCS, Infosys and Tech Mahindra gained by 1-2% each.

On the macro front,India posted its second highest ever monthly trade deficit of $20 billion in January, worsening from a $17.7 billion deficit in December, piling pressure on a widening current account deficit and limiting scope for the RBI to cut interest.

Meanwhhile,little sign of any respite on the external front in December as a surge in imports dwarfed a slight improvement in exports.

For the day coming by Indian markets will be governed largely by local cues as five Nifty companies namely SBI, DLF, Dr Reddy's, Tata Motors and LIC Housing will declare their Q3 numbers today. So today is an important day from results point of view.

Further, The CSO will unveil data on WPI inflation for January which is expected to ease at 7.1% in January 2013 from 7.18% in December 2012. Markets are expected to be volatile and expected to trade in negative and positive territory. Yesterday Nifty rally fizzled out from 50 day Mov. Avg. which is placed at 5961. Nifty resistance for today lies at 5962/5970/5990 and support exist at 5920/5900/5850.

Source : Equity Bulls

Keywords