On Monday, the market opened firm with global cues but drifted lower within few minutes and thereafter moved in a tight band continously till around noon. A small recovery was noticed around noon but that too failed and the market lost ground consistently thereafter till the end of the session on selling pressure from across the board especially in view of poor results from Maruti and JP Associates. The market participants preferred to trade cautiously ahead of apex bank’s meet and some key Q1 numbers today. The Sensex, which surged to 18,194 in opening trade, dipped to 17,993 towards the closing minutes and ended at 18,020, losing 110 points. The Nifty closed the session yesterday at 5418 losing 30 points after making a high of 5466 and a low of 5409. It is believed that the RBI may hike key rates by 25 basis points that have already discounted by the market to contain the rising inflation. Further, Q1 numbers due today of Reliance, L&T and HUL will be keenly watched by the investors. Any unexpected movement from RBI will decide the market movement. We have to see the results, either break out or break down...................
Nifty future may gain strength once it trades and remains above 5440 whereby it may move further to 5455/5478. Strong support for the NF exists at 5408 which if breached decisively with volumes then NF may slide to 5389/5368.
FOR TODAY: Following the overnight gains on Wall street, the market may trade in the positive territory on Tuesday morning and then wait for the policy action by the RBI. SGX Nifty is trading around 20 point up i.e., at 5440 level and mixed Asian markets indicates that we may open in green around 15-20 points up and thereafter ??? probably looking any cues from global as well as from RBI/Q1 results from RIL, HUL etc.
NOTE: Yesterday, I bought some RIL with a view to hold for some days and during last 4-5 mins, my order for NIFTY @5417 (as stated in my post yesterday) executed. So, holding only one lot of NF @5417.
