Gap up opening for Indian Markets on Thursday - ZENMoney

Domestic indices opened the day on a gap up note following firm global cues that Federal Reserve Chairman Ben Bernanke declared US stimulus measures would continue. Further, recovery in rupee value and easing worries about selling by foreign investors following Bernanke comments boosted the market sentiments. Strong buying was witnessed in indices in the morning session. Though markets pared minor gains but continued to trade firm in the late afternoon session on account of buying in front line blue chip counters and taking positive cues from European counterparts. Indices ended the day with huge gains.

On a sectoral front, except consumer durables, all the other sectors traded in green by the end of the day. However, Consumer durables traded firm in morning session on reports that government is considering incentives for gold jewellery exporters hit by restrictions imposed on import of the metal to contain current account deficit. However, it had failed to sustain buying interest amid profit booking witnessed in the stocks. Metals and Banking stocks remained as top gainers of the day. Banks have rallied on expectations of mark-to-market gains following a decline in bond yields. Other sectors like Realty, Capital Goods, Oil&gas, IT, Power, FMCG, Health Care and Auto sectors ended in green.

The Indian markets are likely to open on a sideway note with a positive bias tracking global market movement. Globally, sentiments remain high after the Fed chairman backed sustained stimulus to aid the economy.

Back home, The key trigger for the market today will be the start of the earning season which will be kick started by Infosys. The market will be eyeing the company's guidance which can provide some cues about the outlook for the company the coming quarters. some big moves will be seen in that counter based on how the figures come out.

The market will also remain choppy ahead of the IIP data and CPI inflation figures that would be released at the end of the day.

The rupee will continue to remain the key for market movement in the near term although the news about QE is likely to provide some temporary pullback in the currency.

Crude has slipped from a 15 month high on IEA prediction of supply outstripping demand in 2015. However, in short term, the political unrest in Egypt is likely to keep prices on an upside.

Indian markets can witness some improvement in FII flows in the near term on speculations that the Fed would continue with its accommodative stimulus measures for the foreseeable future. As per provisional figures FIIs net bought equities worth Rs 638.26 crore on Thursday. Continuation of this trend can provide some stability to the markets.

For the Nifty 5960, 5985, 6046 are the immediate resistance levels, while 5899, 5863, 5802 are its immediate support levels.

For the Sensex, 19777, 19878, 20133 are the immediate resistance levels, while 19521, 19367, 19112 are its immediate support levels.

Source : Equity Bulls

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