8th May: 2 mins Nifty wrap up for the day

A daily wrap up on the market, which will keep you updated on what happened in the day and what to expect & news to watch out for the next trading session

Key resistance remains at 6080 to 6110 range

After NIFTY’s surge above the important 6,000 level, it was the SENSEX’s turn today as it scaled 20,000 for the first time since 31st January, 2013. Though the market was positive, number of positive and negative SENSEX stocks were almost equal. The up-move was led by HDFC (+3.85%) and ITC (+2.27%). HDFC reported a good set of numbers for Q4FY13 whereas ITC gained on reduction of VAT on cigarettes from 50% to 25% in Uttar Pradesh. Indian markets followed global cues today which were quite encouraging. While on one hand, global markets could move further up if economic optimism sustains and commodity prices see a resurgence; this would actually spell bad news for Indian companies which may then see a rise in raw material prices and a strain on India’s CAD. Hence, Indian markets may not follow global trends for long. Among broader indices, BSE FMCG (+1.43%) and BSE BANKEX (+0.11%) saw buying interest whereas BSE CAPITAL GOODS (-0.65%) and BSE AUTO (-0.46%) witnessed selling pressure. BSE MIDCAP (+0.47%) and BSE SMALL CAP (+0.47%) moved almost in tandem with SENSEX (+0.51%) and NIFTY (+0.43%).

Asian markets closed in the green today on the back of strong trade data from China. SHANGHAI COMPOSITE (+0.48%) and HANG SENG (+0.86%) ended with gains as China reported a trade surplus of $18.16bn versus Bloomberg estimates of $16.15bn and exports growth of 14.7% in April, 2013 versus estimates of a 9.2% growth. NIKKEI hit a five year peak and closed 0.74% higher owing to the optimism from Chinese data. European markets extended gains on the back of encouraging industrial output data from Germany. The European powerhouse saw a 1.2% M-o-M rise in industrial output in March, 2013 versus Reuters poll predictions of a 0.1% dip. Consequently, FTSE (+0.24%), CAC (+0.73%) and DAX (+0.64%) were all trading with considerable gains. One can see green shoots emerging in global economy after quite a long time. China, US, Europe seem to be slowly coming out of the "gloom" and beginning to "bloom". However, we are still far away from a "boom".

Technical Wrap

Nifty inched higher for yet another day and concluded with a gain of 25 points at 6069. It has managed to give a close above the 80% FR of the entire decline of 6111 till 5477 but now has a trend line resistance placed at 6080 and beyond that there is a resistance in the form of the swing high of 6111. Only if it manages to sustain above 6111 there may be a possibility of a further upside till 6200 to 6250 range.

On the downside it has support placed at 6000. As long as it manages to sustain above 6000 the trend would remain up but on a breach of 6000 it may succumb to selling pressure and come down till 5930 and below that 5850 is possibility

GEPL Capital
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