Nifty has major resistance at 5165 - Alex Mathews

The markets had opened on a flat note and moved down initially but later showed some buying interest and moved up making higher tops. In the second part of the day markets came down into the red but showed smart recovery in the last part of the day and closed in green of the off the highs.

In the early part of the afternoon session, food price index data came in which rose 17.81% in the 12 months to 27 February 2010 while the fuel price index was up 11.38%. The inflation number is expected to touch double digits very soon which raised concern of Central Bank moving forward with raising interest rates. For the day banking, realty and IT stocks gained while auto stocks were down.

Tomorrow we are going to see the IIP data for the month of January 2010 which is expected to rise. The European markets which opened in the afternoon session were down as banks and commodity stocks were under pressure and the Asian markets were mixed. The US index futures were also down indicating DOW could fall at the opening bell but our markets remained strong and close with Sensex up 0.41% and Nifty up 0.34%.

On the sectoral front, the major gainers were IT, Technology, Bankex and Consumer Durable while Auto, FMCG, PSU and Metal were down. New listing Man Infra closed up 37.7% while other gainers were Chemplast, CRISIL, Sundaram Brake etc. Losers' were Lotus Eye, Eurotex Industries, HUL, Idea, powergrid etc.

Nifty is showing strength and has closed in green. Nifty is having major resistance at 5165 if it trades above this level and closes above this level, then we may see further upside in the market.

Source : Equity Bulls

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