Nifty in consolidation mode - Alex Mathews

The markets had opened on a negative note tracking global markets and moved in a range and came down in the noon session but later in the second part of the day, we saw smart recovery in the market which took the markets near to the green line but couldn't stay above it for long and closed below it.

The markets were awaiting the income tax numbers which started coming out today with companies in the IT sector paying more. Stocks like Infosys paying 100%, TCS paying 235.8% while RIL paid 111%, SBI paying 2.59%, Tata Motors paying 115 crore comparing with no payment a year ago. All these payments were made on a year on year basis. As good advance tax numbers started to pour in, we saw recovery in the markets with IT and FMCG sector stocks.

But in the second part of the day, the inflation for the month of February came in which was at 9.89% Vs 8.56% previously. This blocked the markets upward movement and the markets came down a bit in the second part of the day but however managed to close for the day near to the days high and way above the day's low with Sensex losing 0.01% and Nifty at the same time losing 0.16%.

The markets in the European and Asian space too were showing weak trends and the US index futures were trading down indicating a negative opening for DOW.

On the sectoral front, the major gainers were IT, Technology and FMCG while PSU, Capital Goods, Bankex, Realty etc remained losers. Stock specific gainers were Century Textiles, Aksh Optifibre, TCI, Carolinfo etc while losers were ATNINTER, Chemplast, SELMCL etc.

Nifty has been in the overbought region for some days now and it has not made any major upward or downward movements showing that it is in a consolidation mode. For Nifty the major support could be around 5083 and 5000 which the markets may test during the present consolidation phase while the resistance is at around 5165 levels.

Source : Equity Bulls

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