Today, Nifty has support at 6,182 and resistance at 6,357 and BSE Sensex has support at 20,548 and resistance at 21,149.
Taking a leaf from the US markets Indian markets are likely to move up further and 21k is definitely possible. Tech stocks are looking solid and the Q3 numbers from IT companies IGATE and Mastek came out strong. We expect the IT pack to outperform the market with the second rung taking the lead. Midcaps will continue to reel underpressure for some more time thanks to the earlier Euphoria many stocks are trading way above the fundamentals. Large caps will tested for performance though intial results from companies like Axis bank looks good. We believe Large cap valuations are at par and major moves are only in case of positive surprises but liquidity is likely to drive markets crazy soon. Watch for another round of feast from midcaps in the next 10 days. Have a great trading day
Technology stocks led the rally, with the Nasdaq registering its first positive day in nine, as bargain hunters returned to a market reeling under the weight of worries with regard to a possible recession. The Dow has seen more than 500 points taken away so far this year
OUR PICKS- NTPC , IT STOCKS, NICOLASPIRMAL, HDFC, HDFCBANK, CESCMPHASIS, 3IINFO, POLARIS,RELCAPITAL AND HDIL - NIFTY TOWARDS NEW HIGH SO HOLD LONG WITH STRICT SL
What the FIIs are doing
FIIs were net sellers of Rs3.92bn (provisional) in the cash segment on Wednesday while the local institutions were net buyers of just Rs855.1mn. In the F&O segment, foreign funds were net sellers of Rs8.9bn.
On Tuesday, FIIs were net buyers of Rs10.53bn in the cash segment. Mutual Funds were net buyers of Rs125mn on the same day.
News Snippets:
Bajaj Auto is looking at acquiring a car company to break into the higher segments of the market and plans an electric car for Europe.
Goldman Sachs is in advanced talks to invest in the Mahindra group.
ICICI bank to unlock value in four of its subsidiaries and the process could begin in the next six months.
Aditya Birla Nuvo will raise Rs42bn through preferential allotment of warrants to the Kumar Mangalam family in the next 18 months.
ITC plans to launch new energy bars and breakfast cereals to extend its product profile.
UTI Mutual Fund to offer ESOPs to all its employees.
Unitech to go for US$1.5bn QIP in the next couple of months.
Tata Power and Reliance Energy are among the six short- listed companies by the Maharashtra Government for the proposed Dhopave project.
RIL and RNRL have moved the Mumbai High Court over the gas supply dispute between the two companies.
PE players JPMorgan and IDFC are eyeing a minority stake in Hyderabad-based logistics player, Seaways.
Kingfisher Airlines would be permitted to fly abroad this year.
European aerospace giant EADS is acquiring 24% stake in India Aero Ventures, promoted by ex-BPL mobile chief Rajeev Chandrashekar for Rs1.3bn.
The DoT is reconsidering the applications of six companies for telecom licenses, which it had rejected on Tuesday.
The Government assures TDSAT that enough spectrum would be available for existing as well as new players after allotting radio frequencies to RCOM.
Private cement producers in Tamil Nadu agree to set aside two million bags per month for economically weaker section and lower middle class people at a price of Rs200 per bag.
Pharma companies unlikely to get sops for R&D outfits.
Stainless steel companies have asked the Government to increase customs duty on value added stainless steel cold rolled coils to prevent China from dumping into India.
The Government may bring procurement contracts of defence ministry under tax collected at source (TCS) in this budget.
Indian Bank Association members to meet on interest rate cut.
Commerce Minister Kamal Nath says that the Government might consider importing more cement to meet the demand – supply mismatch situation