Another indecisive day of trade, still not able to breakout above 5180. Watch 5085-5090 as a good support before 5050

Another day when we were not able to breakout above 5180 despite the positive Asian and European markets, last time the reason was lower than expected IIP data and this time the reason is 3 times increase in Inflation data Month on Month basis. The inflation data which came at 4.78% against 1.34% was way above analysts' estimates. The 3 times increase is mainly on the basis of base effect but there are some serious issues on the supply side of primary articles, RBI increasing some basis points here and there would not make much of difference rather RBI should try making primary articles available in abundance which would be able to meet the ever growing demands and thereby resulting in the sharp fall of prices.


Nifty View:

5085-5090 is also acting as a good support now as it is a level from where markets have bounced back for the past three days and today also 5090 on the downside could not be breached by Nifty. In addition to all this 20 DMA is poised at 5080 which is very close to this level and will act as a good support. So the conclusion is after 5080-5090, 5050 will be the last support.

We all know the resistance on Nifty,the supports on Nifty are
1) 5080-5090 -- 20 DMA + LAST 4 Day's Low
2) 5050 --- very short term support
3) 5000 --- Red trendline joined from nov + 50 DMA
4) 4800 --- Black trendline support joined from May + 27th Nov low from where Nifty Bounced Back sharply



Stock View: Lanco Infra

Lanco Infra is on the verge of breakout if it closes above 600 with huge volumes atleast higher than average of last 10 days. The black and the Green trendlines joined from May 2008 are acting as a resistance for the up move and the Red trendline will act as a support to the stock. So its a buy on dips till the red line is not voilated on closing basis.




Stock View: Grasim

Grasim is all set to breakout from this 3 month long triangle and this time the stock has a reason to celebrate as prices of Cement bags are expected to go up by 15-20rs/bag in north India. Sustained move above today's high of 2474 can give a move upto 2580-2600



Have a nice trading day

Regards

Ankit