On Friday the market opened higher and sustained well above the level of 5290 in the second half with specific activity in
index stocks. The sectors like Realty, Commodity and Capital Goods did well, whereas IT and defensive sectors FMCG and
Pharmaceutical failed to outshine the market. The real estate sector did well is may be because of low base after a steep
fall during the budget. However, the real winners were Commodity (Metal and OIL and Gas) and Capital goods as they
have managed to gain in spite of quoting at highest high level of the current rally. Another reason may be the discounting
of the positive Job numbers of US in advance.
As per weekly pattern, the market has gained for 8th consecutive week. Even though the rate of advances is diminishing
the market momentum is still strong and is moving up with a stock specific correction. On the higher side, we may expect
minimum 5380/18150 in the near-term. As per weekly rising channel, the market may even move to 5440/18350 levels in
the medium-term. However, as per the over all move, we will give importance to 5380 levels. On the lower side, the
market has major support in the range of 5260 and 5235 on weekly basis.
Our advice is to be cautious while adding fresh long positions around 5380 levels. However, one should be aggressive to add
fresh long positions on intra day declines. As global cues are positive, we may expect higher opening towards 5330 levels,
but in case if it corrects after an opening, then the strategy should be to add long positions at support levels 5310 and 5290
(17740/17660). For the week, we may expect positive momentum in power (NTPC CESC, PFC), small size banks (Dena, UCO,
IFCI), real estate (DLF, HDIL, Unitech) and metals (JSWSL, Bhushan steel, Hind Zinc), capital goods (ABB, JP and Larsen).
