Indian Markets may find support at 5925 - 5910 - Consortium

Nifty gained marginally by 3 points to close at 5943. Reliance held the market in positive territory. Market was lackluster and rangebound.

Cement stocks continued their northbound journey due to hike in cement prices post the biting cold winter that impacted demand in the North and the East. Ambuja Cement, ACC and Madras Cement gained by 2-4%.

The Union Budget will be announced next week and along with the Rail Budget early next week is the only major event for the rest of the month.

Tech, Realty and Oil & Gas stocks witnessed smart rally while Metal, Consumer Durable and FMCG stocks witnessed profit booking. The 10-year bond yield is trading at 2 ½ year lows of around 7.78% levels as the government announced on Monday post-markets that a scheduled Rs. 12000 cr auction stands cancelled.

Asian stocks rose to an 18-month high, amid signs the global economy is recovering. Reliance surged by 3% to close at Rs874. The company and partner BP announced plans yesterday to spend $5 bln in 3-5 yrs to develop 4 tln cubic feet of natural gas reserves in the KG-D6 field off India's east coast.

Realty stocks recorded smart gain (Index 0.8%). DLF has gained 3.6% to close at Rs280. However HDIL has declined by 2% to close at Rs70. Tech stocks witnessed smart rally (Index up 0.6%). HCL Tech has gained by 2.5% to close at Rs723. Others like TCS, Oracle Finance and Tech Mahindra have gained by 1-3% each.

Oil marketing companies gained due to hiked in diesel and petrol price (Index up 1.7%). HPCL, BPCL and Indian Oil surged by 2-3%.

For the day coming by Indian markets are expected to open lower as global cues are weak. Asian stock markets are trading lower, unwinding some of the previous day's strong gains after Wall Street fell on minutes from the Federal Reserve's latest meeting, which sparked concern about the central bank's bond-buying program.

The Nifty moved in a narrow range to close nominally up. Opening strongly positive at 5966, it went up to 5971 and then sailed down to 5937 before closing near the day's low at 5943, up 3 points. Nifty has retraced 38.2% of the decline from 6111 to 5853 which level stands at 5952. However, it has not crossed the last high on the way down viz. 5970 and the following one at 5990. The closing is above the crucial level of 5970 is important for an upmove to continue. Support for the day lies at 5925 and 5910.

Source : Equity Bulls

Keywords