2011 got underway on a positive note as markets posted reasonable gains. Nifty shed almost half its intraday gains towards the close but still the day turned out to be a good one. Metals led the rally with Tata Steel, Hind Zinc, Sterlite, Sesa Goa and SAIL posting good gains. The metal mid caps performed even better as we saw big gains in stocks like Guj NRE, Tata Sponge, Timken, Tinplate , Uttam Steel and other such stocks. ADA stocks further extended their rebound and RCap, R-Infra and R Media managed smart gains. The Auto stocks began on a positive note but the rally fizzled out as the day progressed as heavyweights Bajaj Auto, Tata Motors and Maruti witnessed selling pressure at higher levels. Escorts and Ashok Leyland, however closed on a positive note. Some of the infra names like Nagarjuna constructions, GMR and IVRCL Infra saw some value buying and were amongst the top gainers for the day. Some other prominent gainers were JSW Holding, Hexaware, Godrej Ind, Polaris, Srei Infra, Ind Hotels, HOEC, 3-I infotech, B Chini, Bhushan, Voltas and Punj Lloyd. B.Auto, REC, Uniphos, Wipro, IBReal and Patni were amongst the few that ended the day in red.
Nifty faced some resistance around 6180 and we believe that the 6180-6220 zone could provide stiff resistance in the short term. The trend remains positive as of now but the bullishness might spread to the non-index counters even as Nifty consolidates/corrects. Mid cap IT continues to see momentum as was witnessed even today. Polaris has seen a technical breakout above 185 and sustained trades above 185 could take this stock higher to around 198-205. Metals remain the strongest amongst the heavyweights and more upside is likely in Tata Steel. Both Sesa Goa and Sterlite are at interesting levels as both face resistance around 345-349 and 192-195 respectively. Sterlite in particular has traded in this broad range of 160 to 195 for past 7-8 months now and a breakout above 195 could mean a potential targets of around 225-230. Some others that look good for next 5-7 days are ind Hotels, IVRCL Infra, Voltas, Sintex, Educomp, ABB and B. Chini.
Nifty faces resistance around 6200 while support is seen at 6120 and then around 6150-60.
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