Markets opened with a huge positive gap primarily on account of positive global cues and the best past of Friday’s trading was that bulls maintained a firm grip on the whole day’s proceedings and managed to closed on a very strong note. Stock markets mimicked Indian cricket team's all round performance as bulls went on rampage sending stocks across sectors rallying. Heavyweight stocks like Infosys, ICICI Bank and Reliance Industries anchored the BSE Sensex and the S&P CNX Nifty to two-month closing highs. The market breadth was strong. All the sectoral indices on BSE logged gains. Auto stocks were in demand on renewed buying. Banking stocks extended recent gains after the government tabled banking sector amendment bill in parliament. Metals stocks extended Thursday's gain on hopes of higher demand as Japan begins redevelopment after a devastating earthquake and tsunami on 11 March 2011. Software stocks were in demand on encouraging US tech earnings overnight. Fertiliser shares edged higher on reports of higher demand for fertilizer in the upcoming monsoon season.
Nifty will now have to cross the crucial resistance of 200 DMA of Spot Nifty which lies at 5688. There could be a small pause at this level which is just 30 odd points from the current level. We would advise investors and traders to watch this crucial level closely as one can expect short term reaction from this level.
However, any short term correction should be used as a buying opportunity The immediate resistance for Nifty future lies at 5725 and 5765 levels whereas it has short term supports at
5645 and 5610 levels.
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