Nifty, Sensex enter overbought region - Alex Mathews

The markets had opened on a positive note tracking global cues and moved in a range with a positive bias till the first part of the afternoon session but witnessed some profit booking in the later part of the day but however came to a close with the markets in green.

The US markets had closed with good gains on Friday as the job less claim data in which US employers cut a net total of 36000 jobs in February 2010 after jobs fell by 26000 in January 2010 which was way below the expected numbers of 68000 job cuts. Also the Federal Reserve data showed that consumer credit rose to $4.96 billion in January 2010 supporting the markets.

In the Asian front, Japan's current account surplus totaled 899.8 billion yen in January 2010, a sharp reversal from the 132.7 billion yen deficit year earlier and the also the pledge by French President Nicolas Sarkozy to support Greece further helped the markets in the Asian front to make good gains.

We saw actions in banking, auto and healthcare sector stocks. Banking space moved up in the morning session as the Finance Minister introduced a bill allowing the bank to raise more capital from the market. This was for the State Bank of India and its associate banks in which government is planning to bring down its holding from 55% to 51%.

The markets came off the highs in the second part of the day but held itself in green as the US index futures were in green and finally our markets came to a close with Sensex up 0.64% and Nifty at 0.69%.

Sectoral losers were Realty, Consumer Durable, Metal and PSU. Stocks specific actions were seen in Austral coke, Raj TV, Ajmera realty, Sanwaria Agro etc and on Nifty gainers were Ambuja Cement, M&M, Siemens and ABB while losers were Remsons, Zicom, Sterlite tools, Almondz etc.

Markets have entered the overbought region with 5 day RSI at 88. Nifty is having resistance at 5175 while the support at 5065 levels.

Source : Equity Bulls

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