The markets traded within a tight range amid high volatility and ended in green. All the major sectoral indices ended in green, Banking and the Reality counters being the highest gainers. The Nifty closed at 5,743 up 46 points after making an intra-day high of 5,759 and the Sensex was at 19,151 up 143 points after making an intra-day high of 19,194. The Mid cap and Small cap indices both were up by .84% and .79% respectively. The breadth of the market was flat and the total turnover recorded at Rs 1,47,807Cr. Nifty Jan future ended with 2 points discount.
FOR TODAY: All eyes are on RBI Governor, D Subbarao as the central bank meets for the first time in 2011 to assess the monetary policy of the country. The RBI and Government's desperation to fight inflation has prepared the markets for a rate hike on January 25. Majority expect RBI to hike repo and reverse repo rates by 25 basis points each. Only a minority 6% expect a larger hike of 50 basis points. If it is 25 bps, expect a rally today.
Today's supports are around 5727/5700 and resistance are around 5780/5818. If nifty spot trade above 5777, go long for a target of 5800/5820 with strict stoploss of 5724.
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