Trend on the Nifty may change if the support of 5,045 is broken

Hopes of a rate cut by the RBI pushed the market higher today. Yesterday we had mentioned that if the Nifty closes in the negative today, we may see the benchmark slipping to the level of 5,000 and then finding its next support at 4,970. Today the Nifty managed to make a high of 5,146 which is its best intraday high since 4 May 2012. The index now has to keep itself above 5,045, else we may see it going down to the level of 4,900. The benchmark may go up to the level of 5,280, if it stays above 5,045. The National Stock Exchange (NSE) saw a volume of 51.95 crore shares.

The market opened on a firm note tracking positive global cues. US stocks closed higher overnight on reports that central banks are planning a coordinated initiative if the 17th June Greek elections cause chaos in the global markets. Back home, the Nifty opened trade at 5,070, up 15 points, ad the Sensex gained 23 points to begin the trading session at 16,701.
 

While the opening figure on the Sensex was its intraday low, the Nifty touched that mark a short while later with the index at 5,069. But aggressive across-the-board buying soon saw all the sectoral indices trading in the positive in early trade.
 

The market continued to extend its gains in subsequent trade as investors are still hopeful of an interest rate cut by the Reserve Bank of India (RBI) in its mid-quarter monetary review on Monday.
 

A positive opening of the key European markets helped the benchmarks continue their upmove in the post-noon session. The indices went on the hit the day’s high shortly after 2.30pm. At this point the Nifty touched 5,146 and the Sensex climbed to 16,968.
 

The benchmarks settled marginally off the highs with the Nifty gaining 84 points (1.67%) at 5,139 and the Sensex surging 272 points (1.63%) to end the trading session at 16,950.
 

The advance-decline ratio on the NSE was positive at 939:671.
 

While the broader markets also settled higher, they underperformed the Sensex today. The BSE Mid-cap index gained 0.57% and the BSE Small-cap index rose 0.46%.
 

Today’s upmove saw all sectoral indices settling in the green. The leaders were BSE Auto (up 2.57%); BSE Bankex (up 2.19%); BSE Realty (up 1.78%); BSE Capital Goods (up 1.54%) and BSE Fast Moving Consumer Goods (up 1.43%).
 

Tata Motors (up 5.75%); ICICI Bank (up 3.11%); Coal India (up 2.72%); Hindalco Industries and Maruti Suzuki (up 2.70% each) were the top gainers on the Sensex today. The losers were Sterlite Industries (down 1.57%); Bajaj Auto (down 1.41%) and ONGC (down 0.67%).
 

The top gainers on the Nifty were Grasim Industries (up 5.75%); Tata Motors (up 5.65%); Ambuja Cements (up 4.10%); Reliance Infrastructure (up 3.69%) and ACC (up 3.37%).
The laggards on the index were Sterlite Ind (down 1.96%); Sesa Goa (down 1.33%); Bajaj Auto (down 0.77%) and ONGC (down 0.47%).
 

Markets in Asia closed in the green on news that central banks would look at additional initiatives to tackle the problems in Europe that could follow the Greek elections on Sunday. Meanwhile in M&A news, Hong Kong stock exchange said on Friday it has agreed to buy the London Metal Exchange (LME) in a deal valuing the commodities exchange at 1.4 billion pounds ($2.18 billion).
 

The Shanghai Composite gained 0.47%; the Hang Seng jumped 2.26%; the Jakarta Composite advanced 0.70%; the KLSE Composite climbed 0.53%; the Nikkei 225 added 0.01%; the Straits Times surged 1.34% and the Taiwan Weighted was up 1.14%. Bucking the trend, the KOSPI Composite declined 0.71%.
 

At the time of writing, the main European indices were trading with gains of 0.49% to 1.53% and the US stock futures were in the positive.
 

Back home, foreign institutional investors were net buyers of shares totalling Rs105.58 crore on Thursday while domestic institutional investors were net sellers of stocks amounting to Rs282.83 crore.
 

VA Tech Wabag has bagged an order worth Rs270 crore from Reliance Industries (RIL) to set up effluent treatment plants at Reliance’s Dahej and Hazira complexes. The contract envisages construction of a 32.4 million-litres-a-day effluent treatment plant with recycle facility for RIL’s proposed PTA and PET Dahej manufacturing unit at Gujarat and tertiary treatment plant for Reliance’s Hazira complex. VA Tech settled at Rs446.10 on the NSE, up 2.62% over its previous close.
 

Alembic Pharmaceuticals, on Friday said it along with US' Breckenridge Pharmaceutical Inc has settled patent case with Novartis for Rivastigmine Tartrate capsules used for treating dementia. Under the terms of the settlement agreement, Novartis has granted the two companies a licence to market their generic capsules before the date of the patent expiry. Alembic jumped 4.07% to close at Rs53.70 on the NSE.
 

FMCG major Emami today said it is foraying into kids segment with the launch a talcum powder which has been specially developed for children in 5-12 age group. The Kolkata-based firm is currently test marketing the new brand “Boroplus Kids-Total Defense Talc” in Andhra Pradesh covering various cities including Hyderabad, Vijaywada, Vizag and Nellore. The stock settled at Rs488.50 on the NSE, up 0.63%.