Lack of cues meant no big bang opening for the Niftyon Monday morning as the Chinese and Japanese markets were shut today. The Indian Metrological Department's projection of normal rains in the monsoon period is the only positive news for the market. However, news of Spain's credit rating downgrade will keep traders on their toes.
The Sensex was up 99.12 points or 0.58% at 17286.46, and the Nifty was up 30.00 points or 0.58% at 5239.00. About 721 shares advanced, 260 shares declined, and 2438 shares remain unchanged.
Buying was seen in realty, IT and telecom stocks. Auto stocks were trading mixed ahead of monthly sales numbers which were slated to be announced tomorrow.
Realty heavyweights DLF, HDIL and Unitech were up more than 1% each. Short covering may be one of the reasons for today's rally after recent losses.
Top gainers on the Sensex were DLF, TCS, Sterlite Industries, GAIL and Tata Power. BHEL, Maruti Suzuki, Wipro, Bajaj Auto and Coal India were bleeding in red.
India's largest car maker by sale Maruti Suzuki India lost more than 2% after company posted fall in net profit by 3.03% to Rs 639.84 crore.
Movers & Shakers
Twilight Litaka was up 10%. Navis Capital is in talks to buy stake in Twilight Litika Pharma reports Business Standard.
Himalaya International announced start of production at its 160 cr new plant.
Prism Info was down 5%. The company alloted 23,01,050 Compulsorily Convertible Debentures (CCD's III) of Rs. 100 each at a prefixed conversion price of Rs. 54.04.
5 major concerns for FIIs
FIIs have turned net sellers for April series to the tune of Rs 800 crore. FIIs had bought stocks worth Rs 40000 crore in Jan-Mar period. Five major concerns for FIIs are listed below
"The action formed a Doji on Friday & small Bull candle on Saturday. Index continues to trade in 17000-250 range for 5 days, indicating indecisiveness. While it attempts to hold the 2-month long support area near 17K, it fails to break through our 17250-mark. Short term action depends on how it deals with the 17250-mark." says ICICIdirect.com
The dollar index against six major currencies was at 78.7, down by 0.6% from the previous day’s close. "We expect the US dollar to attract some selling on rallies against the INR. Utilise the highs in the US$/INR May contract to sell." says ICICIdirect.com
The Nifty is likely to trade in the range of 5190-5270. The trading strategy would be to create long positions if the Nifty takes support at around 5200 levels for targets of 5235 and 5258. On the other hand, one can also create short positions if it resists at around 5260 levels.
On Friday US markets ended with moderate gains. Asian markets were tarding mixed today.