Broking house Mansukh said, "Remember we have said 5,680 could be crucial support to watch. Exactly to our expectations spot index shown some resilience around 5,680-5,700 level and rebound with marginal gains. We restrain our previous approach of 5,680 should be very important levels to watch. Below this level current sentiment will further dampens and possibility of losing another 100-150 pts in a short pan of time could be seen". On the flip side any bounce back from current levels may reap indices towards 6,050-6,060 level where we might see some sort of consolidation. Any break out above this may generate some suggestive buying opportunities though 6,200-6,230 might be the next ress zone.
Indian equity markets after the day`s toil snapped five day`s losses to emerge victorious. The benchmarks indices while entering the last hour of trade unexpectedly reversed all its losses to trade in green. Though the recovery made was not substantial but the ailing volatile Indian equity markets finally saw some optimism.
Nitin Raheja of Rada Advisors said the intermediate trend does look down for the market. While the 5750 level has provided very strong support with the market closing above the level on a number of occasions, he still sees it breaking and the market moving downwards. “We would see the market test levels anywhere from 5400 to 5500. If there are any disappointments on the results, I think the market will be in the same punishing mood as now,” Raheja asserted.
Manas Jaiswal, technical analyst has a different view. According to Jaiswal, the daily chart oscillators have shown a positive cross-over and the Nifty will not close below the 200 day moving average i.e. 5645, in the coming days. “On the upside it will trade in the 6100-6150 range.” He sees very strong support for the Nifty in the 5690 and 5645 zone.
Prashastha Seth, Senior VP, IIFL Private Wealth also sees the 5700 level being sustained for the time being. Although it’s too early to call the 5700 level a sustainable bottom, and as consensus on 5500 being the downside is reinforced, he is not very pessimistic and sees the 5700-5750 range as a good buying point. “My sense is that if global markets continue to do well and they maintain the momentum, it may be slightly difficult for markets to go below 5700 as the markets have bounced back three or four times from those levels.” Seth added that only a higher than expected increase in interest rate in the RBI’s January 25 credit policy meeting or global concerns may act as triggers for the markets to dip below 5700.
Nischal Maheshwari, Head Research at Edelweiss says, "It’s a pullback rally". He does not see any of the reasons gone away on macro front. "Whether it is in terms of inflation or a possibility of interest rate hike or possibility that the oil is going cross USD 90 in the current year. I think none of those things have gone away."
SOURCE:MONEYCONTROL
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