The domestic indices closed the session marginally higher extending its winning streak on the second straight day. Despite of overnight gains in the US market, the Indian indices were hovering between the positive and negative terrain for most part of the session. Strong buying in the banking stocks and index heavyweight Reliance Industries also led to some momentum.
The Sensex began the day on a promising note at 18150, higher by 69 points tracking gains from the US markets and positive Asian markets. The index in its initial trade hit the day’s high of 18167. However, the index could not sustain those levels and lost momentum as the investors remained cautious after the Asian markets pared its gains. The Sensex traded in the narrow range throughout the morning session. The index slipped in the negative territory and hit the day’s low of 18072 in the afternoon session on account of uninspiring start by the European indices. The Sensex recovered in the late trade to close the session in the green as buying sustained in the banking stocks for the second day in a row.
At the finishing line, the Sensex shut at 18115, 34 points higher. The Nifty closed flat with a meager gain of 8 points at 5439 after touching a high of 5459 in early trades.
The market breadth was positive. Of the 3,055 stocks traded on the BSE, 1,507 stocks advanced, whereas 1,430 stocks declined. Hundred and eighteen stocks remained unchanged.
Nifty futures opened @ 5440 despite the positive cues from US & Asian markets. It tried to pass by the 5450 mark in the opening session, but found selling pressure making an intraday high of 5448. Nifty futures made an intraday low of 5418 in the mid session and finally closed the day on a dull note @ 5435. Trading range was only 30 points from the low to high.
FOR TODAY: Global cues are mixed. Almost all European markets as well as US markets were closed yesterday RED. Asian markets are trading mixed. Nikkei is dipped into red. SGX Nifty is trading up for 5 points at this time and trading at 5440. Nifty futures is unable to pass the stiff resistance of 5480 and is meeting fresh selling pressure, every time it makes an attempt to break pass this resistance. All cues and views are indicating market may consolidate now for some time. Trading range for today is probably between 5385-5460.
For Intraday, watch if 5418 breaks on the downside. If goes below 5418, Buy half of your trade. Buy the other half around 5402, if you get. On the upperside, sell half of your trade around 5448, and if it goes to 5474 sell the other half. In any case, exit all longs below 5385 and all shorts above 5479.
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