Major Support for Nifty at Rs 5185 - Alex Mathews

The markets had opened on a positive note but very soon slipped into red in the morning session itself. In the first part of the afternoon session the markets witnessed some buying interest which helped it to climb back into the green but later towards the end of the day, profit booking took the markets down to close in red.

We saw selling pressure in IT, FMCG, Technology stocks while buying was seen in Healthcare, power and PSU stocks. Index major Reliance Industries fell in the volatile trade. Foreign direct investment rose 15.4% in February 2010 over February 2009 and FII have been purchasers for past few weeks which helped in the recent rally. We are going to see the quarterly number very soon and the monsoon are also expected to be good and is expected to lend support to our markets.

In the European space, energy stocks moved up as crude price have picked up while the mining stocks declined after yesterdays move up. Asian stocks declined amid concerns a rally that took the MSCI Asia Pacific Index to a highest point had overvalued earnings prospects. The weakness in the DOW futures too overshadowed our markets and our markets came to a close with Sensex down 0.35% and Nifty down 0.25%.

Individual gainers were Uniply, Rana Sugar, TCP Ltd, Kansai Nerolac, Creative Eye while the losers were Syncom, Swaraj Mazda, ISMT Ltd etc.

As expected, Nifty came down in the later part of the day as it was in the overbought region and as we are moving into a long weekend, we may not see huge buying tomorrow. For Nifty the major support is there at 5185 levels.

Source : Equity Bulls

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