Outlook for Nifty is positive - Alex Mathews

The markets had opened on a flat note tracking global markets and moved down in the morning session witnessing profit booking which took the markets down to touch the low of the day in the morning session but later in the second part of the day, we saw buying interest in selective sectors and finally markets came to a close near to yesterday's close in red.

During the day, food price index data came in which rose 17.87% which was faster than the annual rise of 17.58% in the previous week while the fuel price index was up 9.59%. The markets declined after this data as they feared that this would put pressure on the country's central bank to raise the interest rates very soon. Further the increase in the fuel price which was announced in the budget will soon show their effect on the inflation number.

Later in the day, we saw good buying interest emerging in the tyre manufacturers like MRF, JK Tyre, CEAT, Apollo Tyre etc while mining company Sesagoa showed smart buying interest. In the second part of the day the markets climbed back moping up lost gains even though the cues from the European markets were subdued to negative as they awaited the Bank of England and European Central Bank's decision to raise the interest rates. Further the cues from US index futures markets were also negative but our markets managed to close slightly down with Sensex down 0.17% and Nifty down 0.15%.

On the sectoral front, the major gainers were Realty up 2.5%, Consumer Durable up 1.62%, Metal up 1.56% and FMGC up 0.58% while the losers were IT down 1.03%, Technology down 0.67% and Oil down 0.63%.

Outlook for the market is positive and we may see value buying emerging at lower levels. For Nifty the major resistance is there at 5122 and 5160 while the support is there at 5042 and 5000 levels.

Source : Equity Bulls

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