11th Feb: 2 mins Nifty wrap up for the day

GEPL Capital
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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

Nifty may possibly test 6110-6130 range in this corrective up move. Sell-off may resume below 6030 in case the upside bounce gets truncated

It was a range-bound trading session yet again for NIFTY which ended with minor gains on abysmally low volumes. A good set of trade data failed to give any positive boost to the market. Exports increased 3.79% YoY to $26.75bn in January while imports declined 18.07% YoY to $36.67bn. Trade deficit narrowed to $9.92bn in January versus $10.14bn in December; helped by a 77% drop in gold and silver imports. Among SENSEX stocks, Dr. Reddy’s reported a 23.3% growth in Net Sales to Rs35.34bn while EBITDA Margin rose 890bps YoY to 29.5%. PAT was up 70% YoY at Rs6.18bn boosted by 76% YoY growth in revenues from North America. Despite these stellar numbers, the stock closed with losses of 0.42%. At the time of writing this article, TATA STEEL (+2.43%) was yet to announce its Q3FY14 numbers. NASSCOM has predicted robust growth for India’s IT sector. It expects IT outsourcing sector to grow 13% – 15% in FY15 versus 13% growth that it had guided for FY14. TATA MOTORS (+2.83%) was the best performing SENSEX stock on back of robust Q3FY14 numbers and improvement in JLR’s performance. Two key macro announcements are scheduled for tomorrow that will decide future direction for market and RBI policy. IIP for December is expected (Bloomberg consensus) to be (-1.1%) versus (-2.1%) in the previous month. CPI for January is expected (Bloomberg consensus) to be 9.20% versus 9.87% in the previous month. Both these announcements are at 5.30pm tomorrow. Among broader indices, BSE POWER (-1.02%) was worst performer while BSE IT (+0.99%) was best performer. NIFTY and SENSEX closed the day with marginal gains of 0.15% and 0.14% respectively.

Technical Wrap

Nifty ended the day with marginal gains of 9 points at 6062. It is presently in a counter trend bounce back and may possibly test 6110 to 6130 range, in case of extreme bullishness there is also a possibility of 6170 level being tested which is a very stiff resistance for the index. However the up move may be short-lived and the selling pressure may resume. On the lower side the level of 6030 is the immediate support and a reversal level for the immediate term. A move below 6030 would indicate the start of a decline. On a breach of 6030 Nifty may retest the recent lows of 5933 and below that 5800 is a possibility on a positional basis. The bearish trend would persist as long as 6265 is not conquered on the upside

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