Nifty (4620) Sup 4550 Res 4655
Buy Rel Cap (1442) SL 1420
Target 1480, 1490
Buy : RELINFRA in F&O above 1075 target 1135 s/l of 1050
Government will release the industrial production numbers for the month of June. According to most estimates, the data is expected to be better than expected. In May the IIP growth touched a six-year low of 3.8%. For June, expectations are of a 5-6% growth rate as against 8.9% in the same month last year. A good monsoon may help shore up demand for manufactured goods, though rising interest rates are a cause for worry.
Given the mixed set of global cues, we expect a cautious to a slightly positive opening. The trend may turn sideways ahead of the IIP data. The bulls are likely to extend their shopping spree if the numbers are indeed encouraging. On the flip side, a negative surprise may spook the sentiment. Although the trend will largely remain positive, we do not rule out some cooling after the recent spurt.