Nifty resistance seen at 4677 and 4725 levels - Alex Mathews

The provisional figures shows that the FIIs were net sellers of around Rs 1015 crore on Thursday, weak Chinese data’s and selling pressure in Reliance Industries brought down the markets. The markets had opened on a positive note on the first day of January series and moved in a sideways manner till the first part of the afternoon session. Later in the second part of the day, we saw markets slipping into red and touched the low of the day. However it closed for the day, the week and the year on a negative note slightly away from the low of the day.

Nifty has registered a yearly loss of around 24%. The FIIs have remained net sellers this year to the tune of $380 mln as against being net buyers of around $29 bln in 2010.

Selling pressure was seen in oil, realty, banking and metal while minor value buying was seen in PSU, healthcare and technology stocks. IT stocks gained on renewed optimism after better economic data in US. Recent hike in deposit rates by most of the banks will increase their net outflow and so banks were under pressure. Before the RBI quarter review on January 26th, we may see Q3 numbers pouring out by the second week of January which will be strained. The market breadth, indicating the overall health of the market, was negative. On BSE, 1,496 shares fell and 1,280 shares rose.

Nifty has been making lower tops and lower bottoms for some days now and is giving out weak cues. If Nifty fails to hold on to the psychological level of 4600 then we may see Nifty falling towards 4555 and 4484 levels in the short run while the resistance is there at 4677 and 4725 levels.

Source : Equity Bulls

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