Nifty resistance at 4638 and 4664 - Alex Mathews

The markets had opened on a lower note tracking Asian peers and dipped lower in the morning session keeping the tone negative for the day. However we saw short covering in the last hour of trade as US futures and European markets gained. Foreign funds have remained net sellers for some days now on European concerns and also the sentiment remained muted due to the geopolitical worries arising from the death of North Korean leader Kim Jong II. Nifty volatility jumped above 30 today. The market breadth, indicating the overall health of the market, was weak. On BSE, 2,078 shares declined and 769 shares rose. A total of 101 shares were unchanged.

Nifty today came to a close above 4600 after trading below 4600 for quite some time. We may see minor bounce back tomorrow but the overall trend still remains negative. Nifty is having resistance at 4638 and 4664 while the support is there at 4571 and 4530 levels.

On the sectoral front, we saw selling in capital goods, banking, realty, power and PSU while oil, FMCG and auto saw some recovery. Tea stocks declined on reports that tea prices in India dropped due to poor leaf quality. Realty and banking came down after RBI kept the interest rates unchanged and reports showed that home prices in China showed worst performance this year.

Source : Equity Bulls

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