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
Nifty at a make or break level.
The week began on a listless note for Indian investors as the BSE and NSE ended on a flattish note, albeit in opposite directions. The market feels that nothing material would come out from the winter session of the Parliament. Also there is increasing apprehension on the street that there is not enough macro-economic evidence to suggest that RBI would cut rates, as inflation is still above the comfort level of the RBI. Auto (up 1.04%) and FMCG (up 0.87%) were the only gainers whereas Consumer Durables (down 1.14%) and Capital Goods (down 0.83%) were the major losers.
Except for India, all major global markets are in the green. The SHANGHAI COMPOSITE closed up 0.11% while the HANG SENG closed up 0.49% on increased optimism from President Obama that he would be able to contain the fiscal cliff. Following global cues and with renewed optimism on stimulus hopes, NIKKEI continued its rally closing up 1.43%. The optimism was shared by European stocks as well; the FTSE, CAC and DAX opened up more than 1% each. A decision on disbursement of the next tranche of aid of €31.5bn is expected on Tuesday. However, investors are keeping a close eye on the situation in Greece which is not getting any better.
Technical Wrap
Nifty remained highly range bound throughout the session and finally concluded the day with a loss of 2 points at 5571. Amongst the sectoral indices the BSE Auto and FMCG indices were the out performers whereas BSE CD index lost the most.
Nifty traded with a very sideways to negative bias for the entire session and concluded the day at 5571. It is now trading right at the support of an Advancing Channel that has been in place right from June 2012 till date. It is vital that the decline of past few sessions gets arrested near this support zone of 5570 to 5550 and we see an immediate recovery if the bullish trend has to continue. Thus the activity of next few sessions assumes high significance. If Nifty manages to stage an immediate recovery and sustains above 5550 then it would prove as a silver lining for the bulls else if it fails to cross the level of 5640 and breaches 5550 on the downside then we may see a deeper decline till 5465 to 5445 range.
