Nifty support at 5490/5470 - Consortium

We expect Indian markets to open on down bias. Global environment is shaky. Asian shares are mostly trading down after global equities and commodities slumped late last week on weak as U.S. growth and rekindled worries in the euro zone, turning investor sentiment cautious. Further, China's economic recovery unexpectedly stumbled in the first three months of 2013 as the annual rate of growth eased back to 7.7 % from the 7.9 % pace set in the final quarter of last year. The consensus forecast was 8%. So commodities stock especially metals could be edgy.

Going forward, Indian market will take cognizance of WPI data to be released today which is projected to ease to 6.4% in March 2013 from 6.84% in February 2013. Reliance Ind. will brace for its results to be declared tomorrow. Uncertain political situation and FIIs recent selling is weighing on the markets. However technical suggests that Indian markets to show resilience as many stocks are displaying positive resistance. So markets will remain range bound. Nifty has to close above 5544 followed by 5600 for short term trend to turn bullish. Support on downside lies at 5495/5470.Nifty closing below 5470 would further unnerve the markets.

On Friday, Sensex fell by 1.62% while the Nifty lost 1.17% as broad based weakness in IT sector biggies, led by Infosys, dragged down Indian stock markets. IT shares took it on chin after Infosys' Q4 topline growth (in USD) and margins came in below estimates. Infosys' FY14 revenue guidance also disappointed investors even as it refrained from announcing EPS guidance for FY14.

On the macro front, IIP data for February surpassed consensus forecast while CPI also beat market prediction. BSE IT index was the top laggard, sliding by 11.0%. The BSE Teck index, which also comprises of IT stocks, sank by ~9.0%. The BSE FMCG index was the biggest gainer, up 2.0% while the BSE Power index was up by ~1.0%. In terms of index constituents, Infosys was the biggest loser, down over 20%. Wipro, Coal India, TCS, L&T, HCL Tech and Maruti were the other noteworthy losers. JP Associates, Ambuja Cements, ITC, SBI, Bajaj Auto, Hindalco, HUL, Asian Paints and BPCL were the main leaders.

Source : Equity Bulls

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