Nifty Support seen at 4820 and 4750

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

The markets had opened on a positive note tracking global markets and moved down making lower tops indicating a fall and we saw major selloff in the second part of the day and closed for the day losing all the gains made in the morning and closed near to the previous day's close.

In the morning, the Asian markets had reversed its move and were up which helped our markets to open with good gains. During the day, the European markets inched down as pharma stocks fell and also that the EU leaders have given vague assurances to Greece in its efforts to stop a debt crisis.

In the Asian front, stocks gained after a smaller than estimated increase in US consumer prices eased concern that the Federal Reserve would move forward to increase interest rates. During the day, President Pratibha Patel, had said economic growth will rise to about 7.5% in the year ending March 2010 and the aim of the government is for achieving a growth of 8% in the year ending March 2011.

The trading in US index futures indicated that DOW could gain at the opening. Stock specifically, Inox leisure, Adoweld, Shiv Textile etc made good gains while railway stocks like HIRECT, TWL, and Texmaco witnessed profit booking ahead of railway budget which will be presented on Wednesday. On Nifty, metal stocks like Hindalco, Tata Steel, Jindal Steel etc made gains while realty stocks like DLF, Unitech, HDIL etc lost.

Major events that our markets are waiting for are the railway budget and the Union budget. In the Union budget, the government is expected to rollback some of the fiscal stimulus packages. So the investors took a careful approach ahead of budget which lead to a profit booking in the last part of day.

For Nifty the support is there at 4820 and 4750 while the resistance is there at 4895 and 4932. The markets are expected to remain volatile ahead of railway budget, union budget and February F&O expiry.

Source : Equity Bulls

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