MTECHTIPS

MTECHTIPS:-Technical Snapshot:Market Snapshot:

The Nifty futures continued a sideways move as the markets opened 

positive after a day’s break, and the Nifty witnessed profit taking at 

higher levels. The index fell from day’s highs to close with marginal 

losses. The frontline gauges remained range bound for through the 

day but drifted to lower levels in the last leg of trade to settle with 

trivial losses.

The upside for the benchmark gauges was capped since a HSBC 

survey indicated that India's manufacturing sector inched up in April, 

supported by rising order books, but slower output growth and rising 

price pressures dampened sentiment. Also, another data showed 

growth in India’s eight core industries' slowed down to 2% in March 

as against 6.5% in the same month last year reflecting a slowdown in 

the economy. The Indian rupee breached the 53 mark against the US 

dollar to reach the lowest levels in around four months on sustained 

American greenback demand which undermined market mood and 

raised concerns over slowing economic activity and drying inflows 

from foreign funds. Market men were also seen squaring off hefty 

positions from the rate sensitive Automobile counter, which plunged 

over one and half a percent after heavyweights like Maruti and Tata 

Motors reported disappointing monthly sales numbers. Power sector 

remained another laggard in the session as it went home with over a 

percent cut after majors like Tata Power and NTPC suffered heavy 

pounding.Nifty futures gave a  positive opening, Nifty future continued its move towards 5300 levels. 

But market was not able to hold higher levels in the absence of follow up buying interest anD lower trading volumes. Nifty future tumbled down from 5300 to 5235 levels and close near day’s low levels. Nifty May future closed negative at 5246.95 levels. Nifty future saw decrease in  open interest by 0.66% with a fall in price by 0.40%. Market witnessed buying interest in Consumer Durables, IT, Banking, FMCG and Realty sector stocks  while selling pressure was seen in Auto, Power, Capital Goods, Oil & Gas, PSU and Metal sector stocks. . If Nifty future sustains above 5250 levels  then buying interest may be seen towards 5300-5330 levels. Whereas on upside if  it fails to hOld 5220 then selling pressure may get intensified towards 5180-5150 levels.