Nifty to face resistance at 4792 and 4835 - Alex Mathews

After opening on a negative note, we saw a sideways movement in the initial trade followed by a jump into the green zone which lasted for an hour or so. Later towards the afternoon session we saw profit taking with markets coming down to the low of the day and closed in red. Today also markets in UK, Hong Kong etc are closed due to holiday and lack of cues from them casted shadow on the markets. The volumes have showed a falling trend yesterday as well as today showing less interest from the part of the institutions and are expected to remain the same this week due to New Year weekend holiday. The rise in infrastructural output of the country in November didn't have much of an impact on the markets today due to less participation. Nifty VIX eased around 1.16%. The market breadth, indicating the overall health of the market, was negative. On BSE, 1,384 shares declined and 1,118 shares advanced. Next major trigger for the markets in coming months are the Q3 numbers which will start to come out by the second week of January and the RBI quarterly review on January 24th.

Nifty today closed around 4750 levels. It will face resistance at 4792 and 4835 while the support is there at 4715 and 4681 levels. Due to upcoming yearend holidays, the institutional participation is expected to be low and the outlook for the markets remains sideways.

On the sectoral front, we saw selling pressure in realty, metal, banking and PSU stock while consumer durable was the lone gainer. Telecom stock witnessed profit taking after telecom commission suggested a uniform license fee of 8% as against existing 6-10% depending upon type of services and circle.

Asian markets were trading flat to negative and were trading with low volumes as some of the Asian markets especially those in Hong Kong and Australia are closed today. Japanese stocks are trading slightly lower as the bank of Japan warned of downside risks to the economy. European markets were trading sideways to positive today. Also a hand full of economic data is expected in Japan like the unemployment rate, industrial production and retail sales data. Apart from that US markets would see the consumer confidence and Richmond manufacturing index later in the day.

Source : Equity Bulls

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