Fresh week failed to resolve the deadlock between bulls and bears as Nifty continued to be range bound. Opening was a bit soft as global cues were neutral to negative but after a down open of around 30 points, Nifty traded around the neutral territory for better part of the session. IT stocks provided strong support to the indices as Infosys hit new high while TCS and Wipro rose by around 2.5% each. Monthly inflation figures were slightly worse than the expectations and that kept the banking counters under pressure. Even autos did not do much though some buying was seen in tata motors. HUL found some value buying around 220. The gainers for the day were Opto Circuits, Mcleod Russell, TCS, Wipro, LITL, HCL Tech, JP Associates and CESC. Notable losers were Triveni, Essar Oil, Nagarjuna Fert, M&M, Dena Bank and Areva.
Nifty is still locked in 5090- 5150 range but it seems that we could see some breakout soon as the market has been range bound for 6 sessions now. Market is showing some resilience as today also it closed towards the higher side of intraday range despite a negative opening. RIL seems to be preparing for a breakout and could target 1085-1100 in coming weeks. Infosys hit new high but is now crucially placed around current levels. 2650-60 becomes a crucial support for this counter. TCS remains the best of the IT lot and has a target of around 865-875 over next few weeks. More upside is also likely in Mcleod, Opto Circuits, LITL, CESC, JP Associates( above 150) and Ranbaxy. Sugar counters have reached extremely oversold levels and have also reached crucial support levels. They saw some buying at lower levels and there could be a reasonable trading rebound in these counters.
Nifty now has strong immediate support around 5095-5105 while above 5145 it could target 5220.
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