Markets Recover, Inflation At 40-Month Low

The Indian markets are trading up with a positive bias after the March 2013 inflation data came in at 5.96%, much lower than estimates. This is the lowest data in the last 40 months of contraction. Trades are in a wide range as global cues are trading in negative. The Nifty is trading at 5582, up by 54 points and Sensex is trading up by 152 points at 18,390. Both the indices are trading higher in the range of 0.9%-0.83%.

The advance-decline ratio is on the positive side. On the NSE, 760 shares are trading in green and 580 shares are in red.

Top 5 NSE Gainers: BPCL is leading the gainers’ list so far, up by 6.85%. ONGC, Bank of Baroda, PNB and JP Associates are also in gains.

Top 5 NSE Losers: TCS is trading lower by 3.15%, followed by Tata motors, Sesa goa, Infosys and Coal India.

6 of the 13 sectoral indices are trading in loss in the afternoon trading session. IT, Metals And Auto are witnessing a heavy sell-off, trading lower by 0.8 % and Oil & Gas, Capital Goods, Banks, and PSU are trading higher in the range by 0.7% – 1.8%.

All of the Asian markets are down. Hang Seng is lower by 285 points, followed by Nikkei 225, down by 209 points and KOSPI and Straits Times are trading on a negative note by 3 points and 24 points respectively.

Buzzers: TCS is trading lower by 2.4% at Rs 1,475. The stock is moving downward since the last few trading sessions, losing some strength from the Rs 1,500 level. If the stock manages to close below Rs 1,470, we could see a sell-off i.e. up to Rs 1,430. 

Tata Motors is trading above its key psychological level of Rs 268. The stock has dipped to around Rs 264 in today’s trades. It has seen a dip in prices along with a jump in volumes.

We had mentioned in our previous updates that 5510-5490 is the crucial support level for Nifty. If it manages to hold on to this level and closes above 5580, we will see further upmove to 5620-5640.