Indecisiveness continues to be the order of the day and market is likely to be range bound in the range of 5700-5735-5800-6050-6135. As stated for last trading day of the week, Infosys as Infosys fourth quarter results were below analysts' estimates. One has a reason to worry if the level of 5735 is broken by the Nifty as Nifty is going to get a good support near 5800 levels. The figure of 5735 has importance as it also happens to be 200 days moving exponential average. Stiff resistance will be seen in Nifty at the levels of 6000 as it will act as a psychological barrier for Nifty. Markets are presently in the consolidation phase. The market will get a kick upstart with impending results and guidance for the coming year. All those looking for good profitable day trading shares can just latch on with the opportunity and those with patience can hold the quality midcap stocks as midcaps are available at good valuation in the market. Market breadth was negative with 1597 shares declining with 1303 shares advancing and thus coming week we may see selling pressure in Nifty during its consolidation phase.
Infosys Results Analysis
The point to note is that Infosys reported 17% jump in net profit y-o-y, which is below dalal street expectations. Infosys plans to add 45,000 people in FY12 broadly in-line with 43,120 gross additions made in FY11. For the next quarter, Infosys expects revenues of Rs 7311-7382 crore, a growth of a mere 1-2 per cent over the March 2011 quarter. The major reason for Infosys Technologies, going down was Mohandas Pai, who was member of the board and head – human resource development and education & research, quitting the board room. He is next in line after resignation of Nanadan Nikelani, which has created a stir in the price of the company.
Impending CRR Hike
We may see another hike in CRR by RBI as inflation for the month of March surpassed the Reserve Bank of India target of 8%. Thus this will also act as a dampener in the market. We may see hike on 23 Mar when RBI meets for considering another rate hike. Now we just need to see whether this hike is going to be 50 basis points or 25 basis points.
Companies Results
Infosys has kept the Indian markets under pressure and now we need to watch the earnings season as results of key companies like TCS, HCL Tech, JSPL, HDFC Bank, Indusind Bank and Persistent Systems will be coming for Q4 FY11. We may see margins under pressure due to rise in the input costs in the manufacturing sector.
Global Market
Among the key global data to watch for in next week is US building permits, US housing starts, US existing home sales, European monetary union purchasing manager index. We are not the only ones suffering from inflation as China also has also its inflation accelerating to a 32-month high in March, and it has put pressure on the central bank to adopt stringent measures to cool the overheated economy. Due to political uncertainties prevailing Gold has touched an all-time high of Rs 21,710/10 gm.Click Here to Get Free Stock Market Tips in Email
Support and Resistances for the Day
| Indices | Support | Resistance |
| Nifty | 5800-5735-5700 | 6000-6050-6135 |
| Stock | Profit (Rs) |
| Tip | 1140(Rs 50,000 Trading) |
| Share | Gains (Rs) |
| Tips | 32570 |
| NSE Nifty 50 Stocks | Made Money (Rs) |
| Tipz | 45320 |
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Strong future shares at National stock exchange
DCB, Ibrealest, STR Tech, Hero Honda, Bhushan Steel, SRE Infra, Alok Industries, S Kumar, JP Power & Chambal Fertiliser.
Weak future stocks at NSE
Infosys, Jain Irrigation, Nat Alum, Mcdowell, Sun TV, Cairn, Wipro, Siemens, DLF & Sterling Bio.
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