Markets opened on a strong note primarily because better than expected results from SBI and managed to hold the gains as ICICI too posted impressive numbers. Banking stocks like Bank of Baroda, HDFC Bank, PNB and Yes Bank too saw strong buying because of improved sentiment in the banking sector. Reliance was slightly subdued because it could not beat the street estimates. The market breadth, indicating the health of the market, was strong. On BSE, 1,701 shares advanced while 1,174 shares declined. A total of 103 shares remained unchanged. Tata Steel rallied impressively and closed on a strong note. Market’s response to tomorrow’s credit policy will be extremely critical as the strength of banking stocks is extremely important for the market to rally further. BHEL was surprisingly strong and L&T’s strong closing also played a small role in boosting the sentiment of the market.
Spot Nifty has strong support at 5694 and 5674 levels whereas it will face resistance around 5790 and 5835 levels. We feel that the market has the potential to rally to around 5835 levels but for that tomorrow’s credit policy should not disappoint the market.
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