A Roller Coaster Day For Nifty

Fresh week opened on a volatile note as contrasting cues came out from Asian and Eurpoean markets. The negative Asian cues mainly from China ensured a negative gap opening for our markets as Nifty struggled around 5900. But stable to positive European markets once again energized the bulls as Nifty gained over 80 points from its intraday low. Profit taking and position unwinding in the last 30 minutes shaved off all the intraday gains as Nifty closed almost unchanged. Hero Honda was the real hero as it gained around 18% on huge volumes. The under performance owing to Hero-Honda split was a thing of past in only one session as brokerages came out with encouraging reports post management discussion. Ispat was another stock in news that gained around 10%, again on good volumes. JSW Steel was rumored to be the front runner to take management control at Ispat. Broadly, Steel stocks as well as the IT stocks continued to be in positive mode while Banking failed to see any stability even at current levels. In fact, banking heavyweights were largely responsible for Nifty giving up all its gains in the last 30 minutes. Bank Nifty was down over 1.5%. Some of the gainers of the day were IFCI, Rolta, KFA, Renuka, Maruti, Cipla, Hexaware, Colpal, FSL and Asian Paints. On the lsers list were Uniphos, Max, DrReddy, IBReal, S.Kumar’s, Indusind, IOC, Axis Bank, India Info and Sterlite. Volumes were on the lower side.

Nifty saw a rebound from 5900 but again failed to close above 5950, though it did make an intraday high at 5985. Higher levels are attracting some residual selling especially in banking counters. IT heavyweights have seen sustained rise over past few sessions but might see some profit taking/consolidation around current levels. On the other hand, the mid cap IT stocks like Mphasis, Polaris, Hexaware and Onmobile are looking good and could seek higher levels. Cipla may have completed its corrective move and is likely to move to around Rs 385- 390 over next few sessions. Petronet, IFCI and GSPL could also seek higher levels. 

Nifty has support around 5880-85 and then around 5825-35 while some resistance is likely around 6020-30.