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
Sell on a bounce till 5750 for a downside target of 5600
Market movement post the Union budget could be more or less termed a zero sum game. Most blue chips that got hammered on thursday made an almost equal, if not better comeback yesterday. Markets lost more than 6% for the month of February as a whole owing to an explosive mix of global cues, budget disappointment and weak economic numbers. However, markets heaved a sigh of relief after the Finance Ministry laid to rest fears regarding validity of Tax Residency Certificates held by FIIs. MIDCAPS, too were stable yesterday and closed the day with gains of 0.30%.NIFTY and SENSEX ended the day with gains of 0.30% and 0.47% respectively.
Among Asian indices, SHANGHAI COMPOSITE and HANG SENG lost 0.26% and 0.61% respectively due to weak PMI numbers which came in 50.1 in Feb'13; weakest in 5 months versus 50.4 in Jan'13. NIKKEI gained 0.41% despite a fall in its CPI due to expectations of likely stimulus announcements.
Technical Wrap
Nifty managed to bounce back on the last trading day of the week, however despite this bounce it concluded the week with a loss of 2.23% at 5719. We have been maintaining a bearish view for Nifty and continue to maintain the same going forward with a target of 5600.
Now, Nifty may face severe resistance near 5750 on a bounce back. Once again any bounce back should be treated as an opportunity to short sell Nifty for a target of 5600 over the next few days. Long positions are still not recommended at this juncture
