Nifty to face resistance at 5200 levels - Alex Mathews

Markets had opened on a flat to positive note tracking global cues and moved into green in the early part of the morning session but later inched lower to touch the lowest point of the day in the early afternoon session. Later in the second part of the day we saw some recovery with the markets closing with minor gains.

In the morning session the markets were awaiting the IIP numbers which came out by noon. The IIP numbers for the month of January were good with industrial output rising 16.7% in January 2010 from year earlier followed by manufacturing output jumping 17.9%. But as the markets were in the overbought region for some days now, this positive news could not make a major impact on the market.

The rising food price index remains a concern. The IIP growth raised concern that the RBI won't hesitate to increase the interest rates in the next policy review in April. Also latest data from global fund tracker EPFR Global showed that inflows into Asia ex-Japan equity funds have touched the highest point since November 2009 in the week ended 10 March 2010.

In the second part of the day, the European markets rose after dipping yesterday with DOW futures remaining mixed which helped our markets to close for the day with Sensex down 0.01% and Nifty up 0.07%.

On the stock specific front, gainers were Akshopti fibre, Century textiles, SEI Investment, rane holding etc while losers were SMPL, Simbhsugar, Take solution, Dwarkesh, Rajshree sugar etc. On Nifty index gainers were Cairn, Hindalco, Bharti, Tata power etc while HUL, Sunpharma, BHEL, Suzlon etc remained losers.

Nifty is having support at 5100 and 5055 while the resistance is there at 5200 levels.

Source : Equity Bulls

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