Nifty inching upwards steadily after last week’s uptrend
After a sharp rally in S&P CNX Nifty from the bottom of 5095 to 5286 in last week, Nifty is moving upwards slowly and steadily.. Third day in row that Nifty made a DOJI (Open & close around same level); generally signaling indecisiveness. Nifty again respected 5318 on upside & 5273 on downside for 3rd day. Break from this range can bring sharp move on either side. Long positions can be held till Nifty enters the zone of 5400 – 5450 which is a positional target. Fresh long positions can be created either above 5350 or in the support zone of 5250 – 5200 with a stop loss of 5090.
Expectations of measures from the government for revival of the slowing economy aided gains on the domestic bourses. Metal stocks surged on hopes further monetary policy easing from China, the world’s largest consumer of copper and aluminum. Capital goods stocks also gained. Realty shares extended their recent gains triggered by the Competition Commission of India directing cement firms last month to cease and desist from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market. FMCG stocks fell on weak progress of monsoon rains. IT stocks were mostly lower on rupee’s recent rally against the dollar.