Nifty upside capped at 5150 - Alex Mathews

The markets opened on a positive note tracking positive cues from the global markets and held itself in a sideways mode till noon where it witnessed some profit booking slipping into red. But the markets saw recovery in the second part of the day which helped the markets to close in green. After the gains made during the week, markets went in for some consolidation and slipped into red.

Later in the noon session, the government said that it will seek parliamentary approval to spend an additional amount of Rs 31780 crore for the fiscal year to end March 2010 and also assurance came in that there is no risk that India will borrow more than planned to fund additional spending.

The PM had said that the economy will grow by atleast 8% in year through March 2011. This encouraged buying in the market and it recovered into the green. Shipping stocks witnessed some good buying as the Baltic index was up around 7% the other day.

Stock specific action was seen in Amrutanjan, Alkali metals, Zicom, Gokul Refoils, Maxwell etc. On Nifty major gainers were Hero Honda, DLF, Suzlon, Ambuja Cement etc while Tata motors, Axis Bank, Wipro and Unitech lost ground. In the second part of the day the European markets opened in green with banking shares gaining as BOE and European Central Bank left their key interest rates at record low levels.

Further the US index futures also were in green helping our markets to close with Sensex up 0.13% and Nifty at the same time up 0.17%.

The upside for Nifty is capped at around 5150 levels due to overbought situation. Low level buying can emerge at around 5000 levels.

Source : Equity Bulls

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