Indian Equity Markets end week with marginal gains - IIFL

The Indian equity market ended with marginal gains snapping the two weeks losing streak. For the week the NSE Nifty and the BSE Sensex gained by 0.7% each. The NSE Nifty index found strong support at around the 200 Day moving average which is considered as critical support levels. On a year to date basis the Nifty has registered losses of 4.5%. However, the market has recorded gains of almost ~6% in the fiscal year.

After last week's DMK drama, the Samajwadi Party (SP) came in the limelight this week after the SP leader Mulayam Singh Yadav was seen very keen on his goal of making it bigger in the next elections. The SP leader signaled at pulling the plug soon on the United Progressive Alliance (UPA) government according to reports.

Most of the global markets which lost their way in recent weeks were seen bouncing back with the US markets among the top gainers. However, the worry globally is that Cyprus's bank restructuring plan may be used as a 'template' for other nations.

Technical View

The Indian equity market ended almost unchanged after sliding for two previous weeks as the NSE Nifty index found strong support at around the 200 Day moving average and the 38.20% retracement level for entire rally since May 2012. We expect, the Nifty to continue with the upward momentum in the coming days. The pullback in the coming days would possibly be led by the Banking stocks in addition; a close above 5720 would further accelerate the bullish stance.

F&O View

Long rollover was seen in Nifty and Bank Nifty future, which rolled ~52% and ~55% respectively into the next series. Short covering was seen in Banking, Metals and Telecom sectors. On option side, maximum open interest for call is at 6000 strike, while for the put stood at 5600 strike. Put writing was seen at April 5600 and 5500 strike. While some call buying was seen at April 5700 strike. Nifty range for next week might be around 5600-5850.

Source : Equity Bulls

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