All Round Gains As Nifty Touches 6100

Nifty regained 6100 as the December series saw a gain of exactly 300 points. It was a day of all round gains as almost all the sectoral indices closed in the green. Metals and IT continued the gaining spree and were amongst the top gainers for the day. Infosys moved to new highs as did Hindalco. Some of the banks too witnessed some short covering and were amongst the day gainers. But, overall, sector was subdued as Bankex saw only marginal gains. Mid cap derivative counters were the real heroes of the day as stocks like Ruchi, Praj, Aban, Hexaware and HOEC emerged as the top gainers. Some of the other names on the list were Suzlon, IBReal, GMDC, Chambal, GT Offshore, Indusind, Uniphos, Pantaloon, Alok, Bajaj Hind,  OnMobile and IOB. The OMCs were amongst the top losers as EGOM meet on diesel hike was put off. Some others to end in the red were Idea, ABB, Polaris, Tulip, Jindal Holding, India Cement, Syndicate Bank and Crompton.

Nifty continued its northward journey as it added another 40 points to move past 6100. It might see some resistance during the day tomorrow as we move into the first series for 2011. 6120- 30 could provide some resistance to the upmove and we might see a bit of consolidation again between 6000 and 6100. Banking and Realty did not see any substantial shortcovering even on the last day and remain a near term worry for the indices. We believe that IT, Metals and Capital Goods could see outperformance in the next series. CG heavyweights like Bhel, L&T and Siemens are witnessing some positive buildup technically and could be accumulated on bad days for decent returns in January. Sterlite is reaching the upper side of the range at 190-192 and might see some correction/consolidation. Tata Steel, Hindalco and JSW Steel could see positive moves in the short term. Sugar and fertilizer stocks could also witness upmoves over next 3-5 sessions. Chambal, Renuka and B.Chini are particularly looking good.

Nifty has support around 6040-50 and then around 5980 while watch out for resistance around 6120-30.