The market
closed higher for the fourth consecutive session on Monday, aided by ICICI
Bank, State Bank of India and ITC. The market may remain range bound in near
term. They see strength in market only in the last quarter of current calendar
year. As far as RBI policy is concerned, they do not see any rate cut from the
apex bank on Tuesday. Major banks led the support to market today. State Bank
of India, ICICI Bank, Bank of Baroda and Punjab National Bank rallied 3-4
percent. Bank Nifty gained 1 percent. Hopes of further rate cut by the Reserve
Bank of India on August 4 coupled with narrowing deficit in rainfall to 4 per
cent from 7 per cent earlier supported benchmark indices as the BSE Sensex
and NSE Nifty extended their gains for the fourth consecutive trading session
on Monday. Nifty gained 0.26 per cent and 0.12 per cent to 28187 and 8543,
respectively. Expectation of further rate cut in the upcoming monetary policy,
narrowing of monsoon deficit and the government announcement on Friday to
inject capital in weak public sector banks (PSBs) cheered investors on Monday.
The Nifty is
poised to make another stride up or so it seems but for that to happen it needs
to clear 8580-mark decisively. On the downside, it should not fall below 8520
and stay there so as to keep the required gumption to successfully take out the
8580-level. The levels of 8520 and 8580 together constitute the upper and lower
boundaries of the most critical zone for the day. If it is successful in taking
out the 8580 level firmly then it can move up to test 8600 initially and there
after 8630 – 8665. On the downside, below 8520, support comes in at 8490 – 8475
and then 8455.
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RESISTANCE: 8560, 8600, 8640
SUPPORT:
8520, 8480, 8440
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