Outlook on Nifty unchanged

By Alex Mathews - Research head, Geojit BNP Paribas Financial Services

Rebound in Asian markets supported by firm opening from European markets made value buying in Indian markets led by Index heavyweights like Reliance, ICICI Bank and Infosys on Thursday's trade. Nifty has gained nearly 1.47% on hopes of a rescue plan for the ailing Greek economy.

European Union leaders are expected to take necessary steps on Thursday to rescue their member. Expectation of a bailout plan support the world markets including our markets. The euro raised against dollar also lifted the sentiments of markets which were facing heavy sell off.

Banking stocks were in good demand after RBI replaced the existing system of bench mark prime lending rate to a new base rate which will be fixed on the basis of cost of funds.

The outlook for Nifty has not changed, but if there is any reversal then Nifty should close atleast two days well above 4857. Nifty has support at 4757 and 4800. Major gainers on Nifty were Unitech(3.68%), JP Associate(3.54%), Reliance(3.42%), M&M(3.05%) and Tata Motors(3.03%). Major losers were Tata Power(-0.73%), BPCL(-0.48%), Bharti Airtel(-0.40%), Power Grid(-0.28%) and HDFC Bank(-0.02%).

Source : Equity Bulls

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