Indian Equities stage smart recovery - ZENMoney

Domestic Indices opened the day on a positive note following mixed global cues. Investors sentiments remained positive after Finance Minister has expressed his confidence of closing the fiscal with a better set of numbers than initially projected. Strong buying interest was witnessed in metal stocks on account of encouraging data from China (China's services industries data, that remained at 6-month high) and rupee appreciating sharply against dollar has supported the market rally. Markets continued to trade firm in the afternoon session on account of buying in front line counters and taking positive support from European Markets. Indices ended the day with gains.

On a sectoral front, except FMCG, all the other sectors traded in green with Metal and Banking sectors leading the index. CG, Oil & Gas, IT, Auto, Realty, Power, CD and Health Care are among other sectors that ended the day with gains.

Domestic indices are likely to open on a sideway note tracking global market movement. The continuing political impasse in the US and lower than expected economic indicators from US will weigh on market sentiments in the short term.

Back home, FII flows and the rupee movement will dictate market movement in the near term. The rupee, which witnessed its biggest gain in 2 weeks in yesterday's session is likely to appreciate further in the short term supported by improving FII flows and weakness in the dollar due to the uncertainty in the US.

Crude prices are likely to remain under pressure as the continuing US shutdown raises concerns of curb in fuel demand.

FII have increased their flows in the Indian market as the US shutdown has raised speculations that the QE is set to continue for some more time. As per provisional figures FIIs net bought equities worth Rs 997.21 crore Thursday. Continuation of this trend can take the markets to higher levels.

For the Nifty 5951, 5992, 6107 are the immediate resistance levels, while 5835, 5761, 5646 are its immediate support levels.

For the Sensex 20027, 20151, 20496 are the immediate resistance levels, while 19680, 19459, 19114 are its immediate support levels.

Source : Equity Bulls

Keywords