Nifty has support at 5235 and 5204 - Alex Mathews

The markets had opened on a positive note tracking global markets but could not sustain at higher levels and started to inch downwards to touch the lowest point of the day in the later part of the day and closed near to it. We saw good amount of buying in real estate firms, hotel stocks and paper manufacturers. Some of the pharma stocks too were on the gainers side.

But as the weakness in European markets continued to deepen, banking, oil and capital goods stocks came down with Nifty breaking the 5300 mark during the day. The controversy over the ULIPs between IRDA and SEBI may have had some effect on the equity markets as they bring in good source of funds.

During the day the inflation for the month of March came in which was at 9.9% Vs 9.89% in the previous month. Also the primary article index rose 13.88% in the year to 3 April 2010 while the fuel price index rose 12.43%. Rising inflation remains a concern as we are nearing the policy review of RBI later this month and the market expect a possible interest rate hike. Such a rate hike may curtail the investment flow and also affect the real estate space.

Mean while the monsoons are expected to be good this time which will give support to the markets. The trading in US index futures showed that DOW could fall 32 points at the opening and Nifty came to a close down 0.93% and Sensex at the same time down 1.03%.

Individual gainers were Prime Securities, Kamat Hotel, Bluedart, Excel Info, Sarda Energy while the losers were Zee News, Bag films, Ashco, Max, Amrutanjan etc.

Nifty is having support at 5235 and 5204 while the resistance is there at 5319 and 5362 levels.

Source : Equity Bulls

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