Nifty to see resistance at 5400 - Alex Mathews

The markets had opened on a negative note and touched the lowest point of the day and got support at lower levels in the morning session itself and took the market back to green by noon. Later in the second part of the day we saw markets retreating from the top to close in red near to the day's low.

The initial weakness in the market was due to the concerns over the tussle between the market regulator SEBI and IRDA. SEBI had banned 14 ULIP policies after the market hours on the Friday.

Later towards the afternoon session we saw the IIP numbers which were below the estimates with IIP for the month of February 2010 at 15.1% Vs 16.7% in January 2010. Consumer Durable rose 29.9% and capital goods rose 44.4% while manufacturing rose 16%. After these numbers the markets shrugged off the earlier recovery and came down into red.

Also during the day RBI allowed FIIs to use their government bond holdings as well as foreign sovereign securities with AAA rating as collateral for stock market transactions. In the second part of the day, the European markets gave up initial gains after euro zone finance ministers approved an emergency aid for Greece. The US index futures were in minor green color and our markets finally came to a close with Sensex down 0.45% and Nifty down 0.41%.

Stock specific action was seen in Energy Development, Balaji Tele, FCS Software, Elgi Rubber etc while the losers were Amrutanjan, Dynacons, Aqua, Surya jyothi etc. Nifty volatility index jumped up today and is at 20.05 Vs 18.44 on Friday.

For Nifty the major resistance is there at 5400 which could be possibly breached tomorrow.

Source : Equity Bulls

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