Action packed yesterday ended down with huge volatility.INFY's muted
guidance hammered the stock and the other IT companies.HDFC posted good
results and the stock ended positive by more than a percentage.INFY was
down by more than 8% and is currently trading below the 200 day moving
average.Investors who would like to accumulate the IT Giant can wait for
few days for the stock to settle down.
IIP data for November came better than expected but it went unnoticed by the bulls as the index heavy weight INFY and RIL (both account for nearly 17% index weightage) were down.IIP for November is at 5.9% compared to negative 5.1%(Revised to negative 4.7%). Food inflation came a bit up at negative 2.9%(week ended December 31st)compared to negative 3.36 percent the week ended December 24th.Core inflation is at 7.9% which lead to the fall in the indices as this may delay the RBI's rate cuts.
In the International front Spain sold 13 Billion $ worth of bonds yesterday(twice the sales target) as the yield was down.Italy sold bonds at half the yield which it paid on December 12th auction.Most of the European indices ended in green.Fitch placed long-term ratings on Bank of Ireland's UK covered bond program and all bonds issued under it on credit watch negative.
In the USA, retail sales for December was flat compared to the month of November and the jobless claims rose after
falling continuously for the past few weeks.But the indices edged higher on EU optimism.
I expect our markets to open positive tracking the Asian peers.Stay cautious at higher levels.A move below day's low in the second half may accelerate the fall.
Alex sir's view on Nifty for the day.
Supports for the day are at 4815,4800 and 4746. Resistances are at 4840,4874 and 4880.
IIP data for November came better than expected but it went unnoticed by the bulls as the index heavy weight INFY and RIL (both account for nearly 17% index weightage) were down.IIP for November is at 5.9% compared to negative 5.1%(Revised to negative 4.7%). Food inflation came a bit up at negative 2.9%(week ended December 31st)compared to negative 3.36 percent the week ended December 24th.Core inflation is at 7.9% which lead to the fall in the indices as this may delay the RBI's rate cuts.
In the International front Spain sold 13 Billion $ worth of bonds yesterday(twice the sales target) as the yield was down.Italy sold bonds at half the yield which it paid on December 12th auction.Most of the European indices ended in green.Fitch placed long-term ratings on Bank of Ireland's UK covered bond program and all bonds issued under it on credit watch negative.
In the USA, retail sales for December was flat compared to the month of November and the jobless claims rose after
falling continuously for the past few weeks.But the indices edged higher on EU optimism.
I expect our markets to open positive tracking the Asian peers.Stay cautious at higher levels.A move below day's low in the second half may accelerate the fall.
Alex sir's view on Nifty for the day.
Supports for the day are at 4815,4800 and 4746. Resistances are at 4840,4874 and 4880.
