Telecom Stocks on buyers radar as TRAI proposes hefty cut in auction prices - ZENMoney

Domestic Indices opened the day on a gap up note following firm global cues. Sharp recovery in the Rupee against the dollar and strong exports in August also boosted the market sentiment. Markets remained positive as US reported disappointing farm payrolls data, which raised hopes that the Fed Reserve may be hesitant to announce tapering of stimulus as early as next week. Strong support from global counterparts and improved domestic car sales data coupled with narrowed trade deficit data boosted the investors' sentiment. Markets continued their rally throughout the day and ended the day with huge gains.

On a sectoral front, All the sectors in the indices traded in green with Auto sector leading the rally. Strong domestic car sales data aided the gains in the auto sector. Capital Goods, FMCG, Consumer Durables and Power sectors are other major gainers of the day. Health Care, Oil&Gas, Banking, IT, Metal, Realty and Tech sectors ended the day with marginal gains. Telecom stocks remained on the buyers' radar, as the TRAI proposed a hefty cut of up to 60 percent in minimum auction prices.

The Indian markets are expected to witness a positive opening today tracking both domestic and global cues. Improving economic outlook in China and receding fears of a US military attack on Syria will spur global market movement.

On the home front, continued strengthening of the rupee coupled with positive trade deficit numbers released yesterday are likely to drive market rally further today. The market will also be tracking the FII flows for direction. FIIs bought in a staggering Rs.2563.6 crore in equity market on Tuesday and continuation of this trend can take the market to higher levels.

Crude prices will be under pressure amid easing concerns about an imminent US military strike against Syria reducing fears of a supply break from the Middle East. However, any downside will be supported by improving outlook for China, which raises hopes of a demand increase.

For the Nifty 5955, 6014, 6180 are the immediate resistance levels, while 5788, 5679, 5513 are its immediate support levels.

For the Sensex 20192, 20387, 20955 are the immediate resistance levels, while 19623, 19250, 18682 are its immediate support levels.

Source : Equity Bulls

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