Market Update : Nifty to see resistance beyond 5150

by khalid on 18/09/2011 · 1 comment

The hike in the interest rates by the RBI by 25 basis points last Friday didn’t really bring strong reaction from the BSE and the NSE. It is believed that the rise that was seen in the past week had factored the rise in interest rates quite well.

The Nifty closed at 5.84.25 at close last Friday which was approximately 0.5% rise for the week. The week also saw inflation figure release of the WPI (wholesale price index), at a 13 month high. In the series of events that followed, the government also allowed a raise of petrol prices by Rs. 3.14 per litre and cooking gas by 1.51%. This shook the BSE capital goods market and saw its fall by 3.11% and this was possibly the biggest loss recorded for the week.

The support that Nifty will get shall be around 4900 but it is to face huge resistance if it touches 5150 levels. Breakout and further rise shall be experience only when the 5300 level is broken as per the technical analysis by the analysts.The events to look out for are the FOMC meet, further hike anticipated from the RBI and home and retail sales in the US. It will be interesting to see how the global trauma impacts the Indian sentimental market.



Bell the Bull’ sees the markets rising further as major companies are to announce their results in the months to come for the quarter. The subtleness in such rise is expected only because of the lull in the US and European markets.


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