Nifty sees support at 5K

Indian markets are trading in a very narrow range after recovering from the day’s low. The Nifty saw good support at the 5K levels, and buying lead the market to move upwards. Among the sectors, Capital Goods, Power and Auto stocks showed some strength, while Consumer Durables, FMCG and Metals are dragging the market downwards.

Asian Markets continued to trade in a mixed bag. The Chinese market was trading down by more than 1%, while the Nikkei and Hang Seng are trading in green zone. European markets opened in the green after the news that the Italian Prime Minister had introduced a proposal to cut the nation’s debt.

Back home, BHEL is the leading index gainer, up 2.35% at Rs 289.10. Hindalco recovered from the day's losses, and is up 1.22% at Rs 136.95. Realty heavyweights DLF and Jaiprakash Associates are also up by 1% and 2% respectively.

On the other hand, Sun Pharma was the leading index loser, down 1.70% at Rs 524. Metals stocks like Tata Steel and Sterlite Industries continued their morning losses, and are trading down 1.24% and 1.05% respectively. Banking stocks like HDFC Bank and ICICI Bank are also trading weak. Other losers include Jindal Steel, HUL, TCS, Infosys etc are marginally in red zone.

Man Industries surged 4.69% at Rs 117.15, after the news came in that the company has received orders worth Rs 515 cr. Gitanjali Gems has had a volatile day, and is now trading at 0.58% higher at Rs 340.10, after it informed the bourses that its wholly-owned subsidiary, Aston Luxury Group, has acquired 100% stake in Crown Aim.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1269 shares rose, 1204 shares fell and 132 shares remained unchanged.

In conclusion, we expect the markets to remain volatile for the rest of the day, and advise readers to play with caution.