A Listless Day at the Bourses

It was a listless day at the bourses as Nifty failed to follow any direction. It did try twice to claw its way past 5400 but could not manage to do that. Most of the global markets were trading higher but those were largely ignored by our markets as perhaps it was more concerned with the higher crude prices. Some stock specific moves brightened the otherwise dull day. HOEC gained over 9% on very heavy volumes while Ranbaxy lost substantial ground as mylan sued US FDA over lipitor. Some of the significant gainers were Escorts, Opto Circuits, Areva, Lupin, Sun Pharma and GMDC. Losers included PFC, Central Bank, Aban, S.Kumar’s, Tata Communications, Hindalco, Nalco and Jet Airways.

Nifty did not do much but the fact that it failed to move past even 5400 is a cause of concern. On the hourly charts it has given a breakdown by falling and trading below 5420 and sustained trades above 5420-30 only would negate the current bearish short- term structure. On the downside support exists around 5325-30 and then around 5280. Hindalco and HUL have given a breakdown on daily charts by closing below 194 and 270 respectively. Other stocks that look weak are Ambuja Cements, Infosys, Mundra Port, Auto stocks and Jet Airways. Few stocks that are showing resilience and could move higher in even a marginally bullish market are certain banking stocks like Andhra bank, HDFC bank, Indusind bank, Axis Bank, IOB, OBC and others like HDFC, REC, Crompton, Lupin, GMDC and Opto Circuits.

Nifty has immediate support around 5330 and then around 5280 while resistance is seen around 5420-5430.