Inflation at 12.01% and weak Global Cues might bring in weakness and profit booking!

Our markets were volatile yesterday due to profit booking by nervous retailers, a head of release of inflation data, but finally closed with marginal gains. VIX closed at 35.67. Nifty futures have closed with 8 points premium finally. Inflation data released yesterday after market hours, has come at 12.01% is in line with analysts and economists expectations. Though the figure is marginally higher than previous week(11.98%) the rate of raise of inflation has certainly slowing down, should be good news. However, US markets tanked overnight due job less claims numbers being the highest in last 6 years, and raise in Crude prices intra day above 120$. Bank of England and ECB left the interest rates unchanged. Asian markets are trading mixed and Singapore Nifty futures are currently quoting at 3 points discount which might give weak opening for our markets too.

 

Domestic news flow is positive for our markets from Government, Telecom Minister Mr.Raja announcing the auctioning of 3G spectrum across country, IPO of BSNL during the fiscal which aims to off load 5 to 10% of 100$ Billiion equity will improve the sentiment. Though the unions have already opposed the move, if it goes through, as being planned by government, the fiscal situation would improve. These IPOs from PSUs would revive the primary market too, which inturn improve the secondary market sentiment. FIIs have turned net buyers during the past few days, and Nifty closing above 4500 for 3rd consecutive day is good news. Today being the last day of the week, if Nifty can close positively above 4500 too, then it would confirm the bottom for the medium term. 100DSMA currently placed at Nifty(4613.73) & Sensex(15409.54) would invite selling and profit booking on week end considerations.

 

Range for the Day: Nifty might trade in the range of 4450 to 4650.