The Indian Stock Market opened on a bearish note and all the pivotal lost considerable ground during the day. However, the sentiment changed for the better in the afternoon session with the Finance Minister announcing a series of measures like deferring GAAR provisions for a year.
The Finance Minister’s announcement gave a much needed respite to the bulls and the nifty closed in the green. Capital Goods, Consumer Durables, Power and Metal were the best performers during the day. Whereas FMCG, IT and Oil and Gas were the laggards. As a result, the nifty closed with a gain of 27 points and Sensex was up by 82 points.
The market breadth was positive with advance /decline was at 734 and 681 respectively on the NSE. The top performing stocks were BHEL, BPCL, L&T, while losers were JP Associates, Cairn India and HCL Tech.
The direction of the market is not known yet. Positive trend may continue for a few more sessions. However, the Govt’s reform process will be watched with keen interest.
Technical Analysis: On Monday, Nifty closed the day at 5114.15 and Sensex at 16912.71. The Nifty may face resistance at 5200 and 5250 while on the down side; the support levels will be 5100 and 5050. Cautious optimism should be the watch word for the day.
Strategy: If the markets open with a gap up, it is advisable to make an entry only on reactions rather than jumping on to the fray. Keep booking profits at higher levels.
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