After opening on a subdued note, the benchmark Nifty continuously rose to make a high of 5297 yesterday. At the end of the day Nifty closed at 5289.05. It had a net gain of 53.15 points or 1.02% over the previous day’s close. Buying was witnessed across the board. Metal (Today, Tata Steel above 480 it may be nearly 489) and Information Technology (Today, you can watch for MPhasis) stocks are on the buyers’ radar.
Technically, Nifty has been moving within the range of 5210 and 5370 for last couple of trading sessions. So the immediate support and resistance are 5210 and 5370 respectively. If Nifty breaches 5370, an upward rally may carry it to 5435 in the short term. However, if Nifty breaks 5210, short term trend will be negative and it may go down to 5140.
CUES FOR TODAY:
The index is below its 5-day average (at 5258) - Negative; below its 15-day average (at 5280) - Negative whereas it is above its 25-day average (at 5194) - Positive and is above its 200-day average (at 5078) - Positive.
GLOBAL CUES:
Though European marets ends nearly 1.5-2% high but DOW and NASDAQ has gave up almost all of their gains at end; All major Asian markets are trading in RED.
FOR TODAY:
On an intra-day basis Nifty has a support at 5264 and is likely to face stiff resistance near 5315. If it breaks 5264, it may go down further to 5225 and then 5206. However, a move above 5316 can see the Nifty going higher to 5340 and then 5372.
Buy IFCI Ltd. in the range of Rs 57-58 with target of Rs 62-65 and stoploss of Rs 54. The stock is phasing a good upside rally and could continue the upside phase for next two-three days. So here one could go for buy this stock with target of Rs 62-65.
Buy Maruti Suzuki India Ltd above 1400 with target of Rs 1418 to 1430 with stoploss of Rs 1380. Maruti Suzuki India (MSIL) is the largest player in the Indian car market with 50% market share. MSIL is way ahead of its competitors with its strong brand equity and excellent dealer network. Indian car industry is at the cusp of strong long term growth and the entry of global auto giants inthe Indian market validates this view.
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