Market View: 29-May-2012

The slight drizzle seems to remind one that monsoons are getting closer and hopefully will be normal. In fact, we’ve had a rather pleasant start to the week, with the main indices spurting on a mild recovery in the global risk appetite. The Rupee too gained from a global bounce. The euro rose after Greece's pro-austerity party topped polls ahead of June elections, raising hopes that the debt-strapped nation will stick to budget cuts and stay in the euro bloc.
However, the European markets erased all the gains amid growing concern about Spain’s shaky banking sector. Shares of Bankia sank 28% in Madrid after news that the Spanish government will inject €19bn into the troubled lender.
Markets in the US were closed for the Memorial Day holiday. All eyes will be on the latest US monthly jobs report on Friday. Final PMI data for the Chinese manufacturing sector will also be on investors’ radar.

For India, the driving force will be earnings from some of the big names, besides data on Q4 GDP, manufacturing PMI, exports and monthly auto sales.

Key Results Today: ABG Shipyard, Apollo Hospitals, Aurobindo Pharma, Bombay Rayon, Chettinad Cement, EIH, Everest Kanto, GMR Infra, Godfrey Phillips, Hindustan Copper, Hindustan Organic Chemicals, Hotel Leela Venture, HPCL, IPCA Lab, Jindal Stainless, Kolte Patil, Lanco Infra, NCC, ONGC, Phoenix Mills, Power Grid Corporation, Praj Industries, PVR, SAIL, Shipping Corp, Shree Renuka Sugars, Steel Strips, Steel Strips Infra, Steel Strips Wheels, Steelcast, Sun Pharma, Tata Motors, United Spirits, Welcorp

Technically: Nifty registered a break out above the key resistance level of 4960 and ended the day above it at 4985 adding 65 points to its value. With the required confirmation of a break out above 4960 in place , Nifty may now test the level of 5050 and beyond that 5100 over a short span of time.On declines, now the level of 4870 would offer support and the level of 4800 continues to remain a very strong medium term support, As long as it maintains this support the chances of an upside till 5100 remains high.

In an alternate scenario if Nifty is unable to sustain above 4800 then we may see further downside till 4700 and lower. However, we remain more biased towards the upside in the immediate term.

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