IT stocks witnessed strong buying - ZENMoney

Domestic indices opened the day on a positive note following the firm global cues. Investors' sentiments turned bullish after IT sector major Infosys reported better than expected results and left FY14 sales growth guidance in dollar terms unchanged at 6-10 per cent. After the Infosys results, investors are now waiting for June IIP and CPI data to be announced today for cues on the Reserve Bank of India's rate cut decision at its policy meet this month. Data showing that foreign institutional investors (FIIs) bought shares worth a net Rs 638.26 crore on July 11, 2013 further boosted the market sentiments in the day. Markets continued their firm trade in the afternoon session with buying in frontlines and taking positive support from European counterparts. Indices ended the day with huge gains.

On a sectoral front, IT and Tech stocks witnessed strong buying after the sector major Infosys has reported a better-than-expected results. Capital Goods, Power, Health Care, Oil & Gas, Banks and Metal sectors also witnessed buying interest during the day. Consumer Durables is the major looser of the day followed by Realty, FMCG and Auto sectors. Shares of Auto sector were under pressure after Car sales fell an annual 9% in June as demand continued to suffer due to rising ownership costs and sluggish economic growth.

The Indian markets are likely to open the week sideways tracking both global and domestic market movement. On the domestic front, The rupee has been trading firm in the last three sessions and any further appreciation can improve domestic sentiments. However, the contraction in IIP numbers will affect sentiments negatively.

The key event for today is the WPI inflation figures that would be announced at the end of the day. WIth CPI inflation at an elevated level, the market would be eyeing the WPI inflation which is also likely to see an uptick due to higher food article prices and rupee depreciation.

Crude prices will continue to be on the rise on speculation that US crude stockpiles will see further drop. Further rise in crude prices will be negative for the Indian markets.

FII flows are witnessing some improvement as liquidity concerns abate at least temporarily due to the comments from the Fed Chairman. As per provisional figures they net bought equities worth Rs 644.82 crore on Friday (12th July). Continuation of this trend can provide support to the market.

For the Nifty 6035, 6061, 6129 are the immediate resistance levels, while 5967, 5925, 5857 are its immediate support levels.

For the Sensex, 20039, 20119, 20325 are the immediate resistance levels, while 19832, 19705, 19499 are its immediate support levels.

Source : Equity Bulls

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