Anagram's Daily Call:02/02/2010
VIEWPOINT : BOUNCE BACK, AS EXPECTED
US markets yesterday registered their best one day gain of 2010, prompted by strong manufacturing data and earnings. Institute of Supply Management (ISM) index rose to 58.4 versus the expectation of 55.5, its best performance in more than five years in January. Other asset classes, viz. base metals, precious metals and crude also bounced back.
Our markets put up a smart show yesterday by erasing all the opening losses by the end of the trade. While Nifty gained 0.4% and Sensex closed flat, broader market outperformed significantly as depicted by BSE Mid-cap and Small-cap indices that surged 1.8% and 2.7% respectively. According to data released yesterday, India's Imports rose by 27% in December, the first rise since the financial crisis, indicating that the domestic economy was on its way to recovery. Exports too grew for the second successive month. Expect the broader market to continue to outperform in today's trade as well. Expectation of freeing petrol and diesel prices after the Kirit Parikh committee submits its report this week will keep the Oil PSUs active. Auto counters will be in limelight on the back of robust January sales figures. The first resistance in Nifty comes around 4967, followed by a stronger one at 5091.
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Regards,
Anagram Research
Please use your discretion before acting on the ideas expressed in the group.
Happy Trading,
United we grow!!!
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