Bulls reclaimed the 5000 mark on Nifty yesterday as the Asian indices
rallied for the day.Better Q3 earnings of companies like HDFC Bank, Hero
Moto Corp.,Bajaj Auto helped the index to close above the 5000 mark for
the day.Rupee supported the sentiment and closed at 50.25 against the
US Dollar.Lot of big events are unfolding in the days to come.Today is a
big day with the index heavy weight Reliance announcing its Q3 results
after market hours.Reliance may announce share buy back and the stock
rallied on Wednesday on account of this and it was up by around three
fourth of a percentage yesterday.On the negative side, in December
Nomura had cut the Reliance rating to ,"Neutral", from, "Buy" and last
week Morgan Stanley had cut the target price of Reliance to Rs.650 per
share.As the refining margins are edging lower added with a slump in
output from KG basin, the company may post a decline in earnings.
All eyes are set on the RBI's first policy meet for the year 2012 scheduled on Tuesday,next week.And the SBI chairman said last week that he is not expecting a CRR cut in this policy meet.Though the food inflation is falling but the manufactured products inflation came at 7.42% for December 2011 compared to 5.39% a year ago I personally feel RBI would adapt a wait and watch stance.
France and Spain Successfully auctioned medium to long term bonds yesterday at a lesser yield than the previous auctions.This was the first auction of medium to long term bonds after S&P had downgraded.European markets rallied and the CAC closed up by almost 2% for the day.
In the USA,initial jobless claims fell to 352,000 beating the analyst's expectation and the consumer price index was unchanged.And the US housing starts fell more than the forecast to -4.1% in December compared to 9.1% in November.Dow Jones initially edged lower but picked up soon and closed on a higher note for the day.
I expect Nifty to open positive tracking the Asian indices.Results of Wipro and Rupee's movement to decide the direction for IT stocks.Reliance Industries will be volatile for the day with a negative bias.Banking and other rate sensitive stocks will be volatile ahead of the RBI's policy meet.Stay cautious in the second half of the day as Reliance will be announcing results after the market hours.Avoid carrying leveraged positions for Monday.
Chinese Markets will be closed through out next week on account of Chinese New Year. Hong Kong markets are closed till Wednesday.Malaysian and South Korean markets are closed till Tuesday.
Disclosure- I do not hold any of the stocks discussed in the article.
Alex sir's View on Nifty(spot) for the day.
Resistances for the day are at 5050 and 5065.
Supports are at 5000 and 4934.
All eyes are set on the RBI's first policy meet for the year 2012 scheduled on Tuesday,next week.And the SBI chairman said last week that he is not expecting a CRR cut in this policy meet.Though the food inflation is falling but the manufactured products inflation came at 7.42% for December 2011 compared to 5.39% a year ago I personally feel RBI would adapt a wait and watch stance.
France and Spain Successfully auctioned medium to long term bonds yesterday at a lesser yield than the previous auctions.This was the first auction of medium to long term bonds after S&P had downgraded.European markets rallied and the CAC closed up by almost 2% for the day.
In the USA,initial jobless claims fell to 352,000 beating the analyst's expectation and the consumer price index was unchanged.And the US housing starts fell more than the forecast to -4.1% in December compared to 9.1% in November.Dow Jones initially edged lower but picked up soon and closed on a higher note for the day.
I expect Nifty to open positive tracking the Asian indices.Results of Wipro and Rupee's movement to decide the direction for IT stocks.Reliance Industries will be volatile for the day with a negative bias.Banking and other rate sensitive stocks will be volatile ahead of the RBI's policy meet.Stay cautious in the second half of the day as Reliance will be announcing results after the market hours.Avoid carrying leveraged positions for Monday.
Chinese Markets will be closed through out next week on account of Chinese New Year. Hong Kong markets are closed till Wednesday.Malaysian and South Korean markets are closed till Tuesday.
Disclosure- I do not hold any of the stocks discussed in the article.
Alex sir's View on Nifty(spot) for the day.
Resistances for the day are at 5050 and 5065.
Supports are at 5000 and 4934.
