Markets had a slightly better week as Nifty managed to close marginally in the green. Week was thick with corporate results as the stocks reacted accordingly. TCS and HCL tech were the clear gainers both at the bourses as well as the on the corporate scorecard. Banking stocks were in action as most of the banks came out with good numbers. Bankex gained around 4.5% for the week as good results triggered short covering in some of the banking heavyweights. SBI slipped below 2500 but recovered smartly towards the end of the week to close with around 4% weekly gains. ICICI was up around 5.5% and most of the mid cap banking counters too closed the week with decent gains. BSE IT and Metal index were the other two to post decent weekly gains. Oil&Gas however, was a drag on the indices as ONGC lost over 6% while RIL too closed in
the red. RIL came with results that were in line with expectations and may not impact markets when they reopen on Monday. Any weakness to around Rs 950-960 should be used as an opportunity by positional traders to accumulate RIL with 4-6 weeks perspective. Capital Goods sector was the other one that showed weakness and L&T was the main reason for that as it lost around 3.5%. L&T is still not showing any signs of bottoming out. ITC slipped after posting expected numbers and is looking weak on charts, particularly if it begins to trade below Rs 166. Rs 174-75 would act as a strong resistance in near term. Banking stocks are showing some strength and are expected to extend rebound next week too. Bank Nifty could target 11350- 11400 if it trades consistently above 10950. SBI came out with better than expected numbers on Saturday and is likely to extend its technical rebound on Monday. Next week could be an action packed week as there is credit policy on 25th and expiry of Jan series on 27th Jan. Volatility could again be on the higher side.
Nifty is basically stuck between 5650 and 5750 and a breakout beyond 5750 could force short sellers to close positions which in turn might take Nifty to around 5830-5850.
Nifty has immediate support around 5650 and then around 5610 while resistance is at 5740-50.
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