Markets opened in the negative territory primarily on account of negative global cues but still managed to show the resilience as the cuts were not deep. Political uncertainity because of the Wikileaks and concerns on rising interest rate environment because of rate hikes of 25 bps both on Repo and Reverse Repo saw some unwinding of positions. Banking majors like SBI, ICICI and Axis Bank saw their share prices drifting lower in a slow manner throughout the day. Other important stocks like Infosys, Maruti, Tata Motors and Dr Reddy also were on the top of losers category. Reliance ADAG group stocks like Reliance Capital and Reliance Infra saw some buying from interested quarters and were marginally up by apprx 2% each. Other stocks like BHEL, Titan and Asian Paints were the gainers primarily because of fund buying.
We are of the clear view that markets here in India have shown strong resilience in spite of several problems both on the domestic front and global arena and hence the bias is clearly on the long side. One should attempt to buy dips and once the Nifty moves past 5550, we could see an easy 100-125 points upmove till 5670 where the 200 DMA lies. Select midcap stocks like VIP Industries, Asian Paints, Tata Elxsi, TTK Prestige, Talwalkars and BF Utilities where fund interest is high could see some decent rise in the coming days because of NAV propping as the financial year end approaches.
Nifty has strong support around 5448 and 5400 levels whereas resistance lies at 5499 and 5525 levels. Trade with a positive bias and buy on dips as long as 5400 level of Nifty is held.
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