Markets Ahead for April 28th ….


Asian markets fell as Ukraine issue once again took centre stage. US and EU are expected to slap further stringent sanctions against Russia later today. Last week saw Chinese mfg data signaling persistent weakness putting pressure on the mkt. Investors are concerned about the Chinese growth. Separately a report released today showed Chinese industrial companies profit rose 10.1% in Q1. It releases official PMI tom.

Local markets have rallied 7.2% YTD with Narendra Modi widely projected to win. There is increasing optimism that the BJP led govt will help spur investment and boost growth. FIIs have pumped in $ 5 bn on expectations of stable reform oriented govt taking power at centre. 5 out of 7 sensex companies that have come with results till date have either beaten or matched analyst estimates. Benchmark trades @ 14.3X FY15 E earnings which are reasonable. We expect market to consolidate in a broad zone of 6650-7000 with high degree of gyration till the general election results come later this month.

Watch Out for :

1. Italy Consumer Confidence
2. US pending home sales

Nifty future is swinging sideways in early morning trades on SGX.

Nifty View :

Last week Nifty held 6730 zone & moved upto 6870 as expected although a bout of profit booking from higher levels on Friday led the Index to reverse the entire gains & close flat on a weekly basis. This is the second week in a row, Nifty has closed forming a Doji. With 6800 & 6500 PE having maximum OI of 20 Lakhs & 25 lakhs resp. & along with 6800-7000 Call having an OI of 20 & 28 Lakhs respectively, 6840-6860 is an key resistance in the next few sessions.

Till Nifty does not cross 6860, it can correct upto 6710-6650. Only on cross-over & sustenance above 6860, it would move upto 6970-7000. Weekly Range could be 6650-7000. Put writing is seen @ 6600/6700 and call writing @ 7000

Corporate Action :

Q4 Results ……Godrej Consumer, HUL, Idea, Shree Cement

Short term Trading Idea
Lupin, KVB, Tata Coffee, Bharti Airtel, LnT, SI Bank, Apollo Hosp, Tata Comm

Investment Call :
ICICI Bank, Sun Pharma, Oberoi Reality, Motherson Sumi.

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