The Indian benchmark indices started the week with a positive note on Monday, the key benchmark indices opens lower as compared to last week close due to disappointment from IIP ( Industrial Production ) and Consumer Price Index (CPI) numbers which comes on Friday.
Going ahead during the session the WPI Inflation numbers come with better than expected at 4.86 percent in June 2013 against 7.58% in June 2012, which does supportive work for the market and success in the recover of early morning's loss.
The WPI numbers positively managed to stay below 5 % in the third consecutive month.

Trends of Internal Inflation

  • Core Inflation placed at 2% Vs 2.4% as compared to month on month basis.
  • Primary Articles at 8.14% Vs 6.65% as compared to month on month basis.
  • Manufacturing Products Inflation at 2.75% Vs 3.11% (MoM)
  • Fuel and Power Group Inflation at 7.12% Vs 7.32% (MoM)
  • Food Article Index At 9.74 % Vs 8.25% (MoM)

In spite of higher WPI Inflation number as compared to last month, Indian stock indices managed to end with its bullish momentum. On the end of the days session NSE Nifty close at 6,031 level with the gain of 22 point. Once again the Bombay Stock Exchange's Sensex has also managed to close above the psychological level of 20,000. Sensex close at 20,034 with the gain of 76 point. However the market today was traded with negative sentiment at the opening session. Indian indices hit their intraday low in the morning session and then made a smart recovery to hit the intraday high after the WPI numbers come in the afternoon session.
The Sensex hit a day's high of 20,072 and made a day's low of 19,883 level, on the other end National Stock Exchange's Nifty hit a day's high at 6,038 and mark a low at 5,981 level during the day.

PSU Banks and Realty stocks has lead the today's rally, both indices managed to end with the gain of more than 2%. Of the Nifty 50-share indices 33 stocks ended with gains while the rest 17 stocks closed with losses.
Top gainers among Nifty stocks are : Punjab National Bank surge with (5.30%), followed by Bank of Baroda by (4.31%), Cairn India (3.96%), JP Associate (3.91%) and Hindalco (3.34%).
Top 5 losers among NSE stocks are : Coal India with (2.57%), NTPC (2.22%), Tata Steel (2.13%), Infosys (2.08%), Bhel (1.35%).

The Weakness in Indian Rupee has benefited to IT and Pharma companies, Stocks traded on 52-week high level. TCS : 1,647.30, HCL Technology : 882.95, Lupin 892.70, Sun Pharma 1,123.70 and Dr. Reddy 2,404.80.

Nifty Daily Technical Chart
nifty daily technical chart

The trend of Nifty is bullish, Nifty traded near to upper end of Bollinger Band on the Daily Chart and made a high near to this level, RSI Indicator is above 70 level, these indicates a overbought situation in Nifty Index.
Support for Nifty placed at 5980-5950 zone and the next Resistance is 6080-6100 level. (Nifty-50 Pivot)

Sell Nifty Below 5990 for the Target of 5950-5890-5865 Stop Loss 6080 (Positional)