Indian Markets decline despite lower WPI - Nirmal Bang

Indian markets declined further today despite lower than expected inflation numbers. The telecom stocks were seen under pressure after the telecom department issued notices to top three operators. Capital goods, oil & gas and auto stocks led the decline. India's headline inflation, based on monthly WPI, declined to 6.62% in January 2013 as compared to 7.18% for the previous month. At the close, the benchmark 30-share index, BSE Sensex declined 110.90 points or 0.57% at 19,497.18 with 16 components registering drop. Meanwhile, the broad based NSE Nifty went down by 36 points or 0.61% at 5,896.95 with 33 components posting drop.

Nifty has held the strong support of 5,870-5,900 levels and one can expect short term bounce to 6,020 levels which faces crucial resistance on the upside.

Action: Nifty has an immediate resistance at 5,940 and on a decisive close above expect rise to 6,020 levels.

There is strong resistance at 12,450 & 12,500 levels on the upside, where selling pressure is expected one should maintain a positive bias only on close above this for an upside potential to 12,650. Bank Nifty has immediate support at 12,280-12,250 levels on the downside.

Source : Equity Bulls

Keywords