The markets have been steady and benign for the last one week. Week-on-week we gained 2.8 percent and month-on-month we gained 6 percent. We closed on Monday at 5383 after attempting 5400 yet again and finding strong resistance there. Nifty futures closed for the first time in a week at a discount indicating a strong resistance at the level. The oscillators are overbought but trend saturation is not visible and some indicators are signaling a bullish trend. World markets have been up for four days on a trot and today being Infy results is all going to play heavily on the markets. The 10DMA for the markets is 5285, 20DMA coincides at the same levels indicating a lot of support there now. No need to get bearish or go short till that level is breached.
Banking & Financials
Sectorally midcap banks looking the best- Allahabad, UCO, Dena, United, IOB looking set to attempt old highs and surpass. Private banks like HDFC, Axis, Yes, Federal looking set for 5% outperformance. Indusind has given a fresh signal of a 10% breakout. Canara Bank too has given a breakout, any dips should be used to buy into the counters. Technically, DCB, Max, IDFC, LIC Housing giving swing buys. PFC looks good to buy on dips until 304-306.
Capital Goods & Infra
Crompton in industrials looking good for a breakout for 280/290 with a SL 254. Cummins on dips for a breakout for 650. JP Associates looking good for 136
Auto & Auto Ancillary
Ashok Leyland consolidating well, fresh move expected soon-dips should be used to buy. Exide giving a breakout for 150 levels.
Dr Reddy reiterate an investment buy-stock has consolidated enough around the 1450-1470 levels is now set to breakout over 1520 for 1680 levels. Aurobindo also signaling a 5-8 percent breakout
IT & IT Services
Polaris has given a stellar performance and targets are close to 220 and 240 levels. Hexaware looking for 93 levels. Dips look good to buy