The S&P CNX Nifty jumped 61.80 points to settle at
5,115.90, its highest closing level since 3 May 2012. The index hit a high of
5,128.90 in intraday trade.
The index hit a low of 5,015.15 in intraday trade, its lowest level since 8 June 2012.
Today's consolidation seemed to be an indication that the
market priced in rate cut hopes.
The market is
keenly waiting for inflation data for May that will be announced tomorrow; Inflation
after a flat industrial output for April will be key factors for the Reserve
Bank of India while taking decision on monetary easing. Strong expectations
have been building up since last month that the central bank may cut repo rate
or cash reserve ratio by 50 basis points to give a boost to sluggish economic
growth.
.
The rate cut
expectations have been led by deterioration in economy data and warns that the
market may see sell-off if RBI disappoints next week.
The Indian rupee appreciated by 25
paise to 55.54 as against the US dollar at the time of closing of Indian
equities.
On the way up, the levels from 5140
the initial resistance and through 5170-5190 would be the most critical supply
zone to cross; once cleared firmly, the bulls would be on a much stronger
wicket. While
crossing the 5190-mark would only confirm the intermediate uptrend, taking out
the 5210-level firmly on closing basis would put the bulls firmly in the
driver’s seat.
Resistance 1
|
5140
|
Support 1
|
5090
|
Resistance
2
|
5170
|
Support 2
|
5070
|
Resistance
3
|
5210
|
Support 3
|
5020
|
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