Bulls were back on Dalal-Street starting off the Diwali week on an optimistic note. The benchmark indices started off with a gap up opening, on the back of overnight gains in the US.
On the first day of November, 2010 (Monday) Nifty futures opened at 6105 and moved upwards to test the widely known resistance at the 6175 levels. Monday's high was just 3 points away from the said resistance. The last trade was at 6156. The BSE Sensex surged 323 points to close at 20,356. The NSE Nifty rose 100 points to close at 6,118.
PCR has inched up from 1.2 to 1.28.
FII inflows have been tapering off. FIIs were net buyers of Rs. 7.11bn in the cash segment on Monday (provisionally), according to the NSE web site. Local funds were net sellers of Rs. 713mn. In the F&O segment, the foreign funds were net buyers at Rs. 36.51bn on Monday.
Today, the RBI is likely to hike policy rates for the sixth time in a bid to contain high inflation. But, since the markets are prepared for the move, it may not have a material impact. The RBI is expected to tighten the interest rates by another 25 basis points. Any higher levels of rate hikes might be considered as adverse by the market.
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The Nifty (weekly)is likely to find support in the 5950-6100 zone; resistance is expected between 6200 and 6300.
In Nifty Future, if the Nifty future is able to break the resistance at 6175 levels with volumes, it may test the resistance area between 6230 and 6250. The higher resistances are at levels between 6325 and 6350 which corresponds to the all time highs.
From PCR angle, 6200 is now the first resistance and 6000 remains strong support.
From PCR angle, 6200 is now the first resistance and 6000 remains strong support.
