Outlook for Nifty looks weak - Alex Mathews

The markets had opened on a flat to positive note and moved up in the early part of the trade but couldn't hold on for long and started sliding making lower tops and closed for the day near to the day's low in red. We saw volatile session today with many ups and down throughout the day.

Today we saw profit booking continuing in banking, auto, metal and realty stocks. Latest data today showed that infrastructure sector output jumped 7.2% in March 2010 compared to previous year's data. We are in the results season and the quarterly results posted by most of the companies were better than expected.

At the centre, political plays caught attention with UPA finally becoming confident after BSP extended hand to support the government to defeat the cut-motion by the opposition against price rise in petrol and diesel.

In the European space, stocks were on the lower side as investor had concerns over other euro zone nations apart from Greece. Markets were down in the Asian space as well even though South Korea's GDP increased 1.8% in the first quarter from the previous three months. In the second part of the day, DOW futures were down which put pressure on our markets and our markets came to a close with Sensex down 0.31% and Nifty at the same time down 0.26%.

On the stock specific front, Pradip overseas, DPSC Ltd, Excel Info etc were the gainers while the losers were GKW Ltd, GAEL, Binani Industries, Malwa Cotton etc. Jindal pack stocks like Jindal Polyfilms, Jindal Photo, Jindal Drilling etc made good gains. We also saw buying interest in fertilizer stocks as well.

The outlook of the market looks weak taking into consideration the global and domestic situations. For Nifty the major support is there at 5263 and 5219 while the resistance is there at 5344 above 5398 levels.

Source : Equity Bulls

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