Last Hour Buying Pushes Up Nifty

Markets opened with a slight negative bias and traded in negative territory for all but last 90 minutes. Nifty dropped to just around 5400 before some strong buying in key heavyweights. IT bigwigs TCS, Wipro and Infosys were the ones that really kick started the recovery and later the others like SBI, RIL and L&T too joined in. RIL came out with its tie-up with BP after the market hours and that should help market to retain the positive momentum. RIL stock should have a positive impact and it is expected to regain four figure mark. SBI has also been resilient and is likely to move up towards 2835-2850. L&T opened on a positive note but then struggled to sustain higher levels and dropped to around Rs 1610. But the rebound from these lower levels suggests that the stock has retained neutral to positive bias and could move up to around Rs 1720-25 and then even to around Rs 1765-1775. Overall, Nifty has found support just around 5400 and it looks likely that Nifty may not break 5375-5400 ahead of Union Budget. On the upside resistance could be seen as the markets heads higher to around 5650.  Some of the banking stocks like SBI, HDFC bank, Syndicate Bank, Allahabad Bank, BOB, BOI and IOB could see more upside. Others that are looking positive are Welspun Corp, HDFC, Educomp, Sobha, Bajaj Auto and JSW Steel.

Nifty has immediate support around 5450-60 and then around 5375-5390 while resistance is seen around 5560-70 and then around 5620.

TCS Results Boost Nifty

TCS results ensured a gap-up opening and despite some volatility during the session market managed to stay in the positive for whole session. Intra day short covering, in fact lifted the indices during last 60 minutes as Nifty closed almost at the highest level of the session. TCS was up more than 5% as it hit a new high. Opto Circuits came out with good results and was the biggest intra day gainer as stock moved up by more than 10% on huge volumes. Some pharma counters too witnessed buying. Some of the top gainers for the day were Polaris, Praj, Indusind Bank, Sterlite, Sun Pharma, Orchid, Ambuja, JSW Steel, Ranbaxy , Axis Bank and JSPL. Exide results proved a big dampener for the stock as it lost more than 10% on heavy volumes. Some other stocks that continued to struggle were Bata, Zee, R-Infra, IRB, HCC, BOB and IVRCL Infra. Breadth was positive while volumes were on the lighter side.

Nifty managed to claw its way back above 5700 on the back of good showing by TCS. Nifty closed almost within the resistance zone of 5730-40. Positive global cues could ensure further upside to around 5785-5810 level. It still looks like a relief rally and one needs to be extremely cautious in stock- selection to play this rally. Pharma and IT are the ones that are throwing up buying opportunities and even the metal stocks remain in the buy on dips category. Petronet LNG is repeatedly finding resistance around 130-132 and sustained trades above 132 could propel the stock higher to around 145 levels. IDFC could see a technical rebound to around 167-169 if it sustains above 160 while some upside is likely in Indusind Bank( above 240), Orchid Chem, NMDC( above 269) and Ranbaxy.

Nifty has immediate support around 5650-70 and then around 5610 while 5780-5810 is likely above 5745