Nifty to trade in range of 5850-6100 levels - Karvy

On Friday the Sensex recorded its highest level in a month and the entire week itself was pretty productive. Banking stocks were major gainers in anticipation of an interest rates cut. Street sentiment says that the RBI could relent and pare rates come March 19. But the trajectory of infl ation and industrial growth hold the key.

Markets shrugged off much of the negativity that came in the wake of the Budget. The Sensex rose 1.4%, or 269.69 points, to end at 19,683.23, the highest close since February 2.

The rupee climbed to its highest in more than a week after moving northward for a third straight session on Friday. The rupee's rise was aided by a dollar sale by banks, and the euro fi nding some strength.

The rupee gained 1.1% for the week, posting its best weekly gain since the week ended on January 18 as part of a powerful global risk rally, although U.S. monthly employment data will have a major impact. The U.S. stock futures have risen, signaling that the S&P 500 will extend a 5 1/2- year high, as investors anticipate the jobs data. Employers hired an additional 165,000 workers after a 157,000 gain in January, according to the median forecast of 90 economists surveyed by Bloomberg. The jobless rate held at 7.9%, the survey showed.

For the week, the Nifty witnessed a decent recovery from the low of 5663 level to 5883 levels, gaining nearly 4% W/W, which is the biggest weekly gain in last three months. The Realty, Banking, Capital Goods, Energy sectoral indices had seen healthy participation outperforming the broader markets. On the other side, Consumer Durables, FMCG and Auto sectoral indices have underperformed the benchmark indices. Long positions can be assumed in Banking, Capital Goods, Consumer Durables, Energy, Metals, Realty and Utilities if the Nifty sustains above 5930 levels. Short positions can be accumulated in Auto, Cement and IT if the Nifty slips below 5930 levels. Overall, we expect Nifty to trade in the range of 5850-6100 levels for the next week.

Source : Equity Bulls

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