A daily wrap up on the market, which will keep you updated on what happened in the day and what to expect & news to watch out for the next trading session
Strong Weekly Close in Nifty to set target of 6200
Indian Markets were choppy but positive today as strong global sentiment and concrete policy reform actions back home pepped up investor sentiments. Today's result announcements were mixed; HDFC Bank reported muted results and ITC reported better than expected results, but both the stocks ended the day with little damage or gains respectively. BSE OIL & GAS continued to rule the roost gaining 3.16% during the day and BSE PSU rallied 2.81%. On the other hand, BSE IT took a breather after a considerable rally last week and was down 1.07% mainly owing to Wipro which suffered a deep cut of 7.68% due to cautious management commentary. Finally, we ended the day with a 0.34% gain on the NIFTY and a 0.30% gain on the SENSEX.
Asian markets were strong today buoyed by strong Chinese GDP growth numbers (7.9% in Q4CY12; the 1st growth acceleration in 2 years) which went on to suggest that China might be out of the grip of the slowdown which had freaked out markets throughout the world. Consequently, SHANGHAI COMPOSITE closed up 1.41% and HANG SENG closed up 1.12%. NIKKEI soared 2.86% on expectations that Bank of Japan would announce fresh monetary easing next week. European indices were mixed. FTSE opened 0.26% in the green ahead of retail sales data for December which is due to be announced later in the day.
Technical Wrap
Finally Nifty showed very positive movement in the current week as 113 points upward rally was witnessed week on week basis. Nifty is at the verge of upward breakout of past 12 day's sideways movement between 5950 & 6060 and expected to continue the movement in the current week also. The immediate resistance for Nifty is 6100 above which sharp movement may be observed till 6150 - 6200 mark. The level of 6000 may act strong support if any correction is seen in the next week. Only in case of breach of 5950, which is current short term intermediate level, Nifty may face profit booking in their stocks hence stop loss of 5950 should be treated as stop loss for current trading long positions. Sector Specific, BSE Oil & Gas, BSE IT Sector and BSE Realty stocks outperformed the index, while BSE Capital Goods, BSE Healthcare, BSE Auto stocks remained in pressure and exhibited profit booking in the entire week.
