Markets consolidated after three days of rally. The
week has started on a positive note. Short covering, along with expectations of
healthy quarterly results and stable crude oil prices, pushed the Indian equity
markets higher on Monday. Today market closed in the green extending its
winning streak to fifth consecutive trading session. After opening with a
positive bias, indices were stuck in a narrow trading range. The key indices
oscillated in a narrow range following three days of sharp up-move and made
marginal gains during the mid-afternoon trade session. Buying was witnessed in
automobile, metals, and information technology (IT) stocks. The headline
indices rallied in line with positive trend seen in Asian markets after Federal
Reserve Chair Janet Yellen on Friday suggested that a near-term interest rate
hike could be around the corner. A slew of upbeat quarterly earnings such as
Hindalco Industries and hopes of above average monsoon also turned the
sentiment positive. The Sensex settled the day 72 points higher, while the
Nifty ended above its key 8150-mark. The Sensex ended with a gain of 72
points at 26726. The Sensex opened at 26695 touched an intra-day high of 26795
and low of 26623. The Nifty closed with a gain of 22 points at 8179. The Nifty
opened at 8166 hitting a high of 8200 and low of 8151.
The market base, which was placed at 7,800 points a
week back, has now shifted upward to 8000 points. We have to respect the
prices and we think 8300-8350 could be seen with a small correction, which is
overdue after this stellar rally. Going ahead, US Federal Reserve meeting and
Brexit are the key triggers to watch, which will keep upside capped.
We
continue to maintain a bullish on the market. The earning season is holding up
and there are no major negative sentiments with regard to corporate earnings.
We expect this sentiment to carry forward over the next few weeks and therefore
expect markets to move at least 50 points beyond 8250. On the downside, we expect
the immediate support at 8150 to hold over the next few trading sessions.
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RESISTANCE:
8230, 8265, 8295
SUPPORT: 8145, 8110, 8075
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