Nifty to face resistance at 5275 and 5330 - Alex Mathews

The markets had opened on a positive note tracking some green color in the global front and moved up for sometime but later witnessed some profit booking at around noon session and came down to touch the lowest point of the day but in the second part of the day we saw smart recovery coming in with markets moving in to test the high of the day and closed near to it.

The US markets had closed the other day in green which helped our markets to open in green. The advance tax numbers of most of the companies were good which raised expectation of a better result season coming ahead. The markets are awaiting triggers such as decontrol of petrol and diesel prices and financial sector reforms such as increase in FDI in insurance sector. Concerns include, rising inflation to put pressure on the Central Bank to increase interest rates as the Fuel price index rose 12.68% in the year to March 6, 2010 up from an annual rise of 11.38% in the previous week.

In the European front the markets retreated from the highs made the other day with banks and commodity stocks losing ground. In the Asian front the markets too became weak on reports that the Greek may seek financial help from the IMF. Also the trading in US index futures showed that the DOW could fall 11 points at the opening.

Today we saw smart movement in the textile sector stocks like S Kumars, Arvind, Raymond, Bombay Dyeing, BRFL etc. Also there was upmove in tyre stocks like MRF, Apollo Tyre, JK Tyre, Ceat Ltd etc. Texmo pipes continued its downtrend today also and got locked at lower circuit.

On the sectoral front, we saw Technology, Metal, IT , Oil as gainers while FMCG, PSU, Capital Goods, Power etc remained weak. Nifty has resistance at 5275 and 5330, whereas support is at 5198 and 5150.

Source : Equity Bulls

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