Reliance industries as well as TCS, two major giants, have announced their results in last 2 sessions and both were in line with the expectation. We might see some profit booking to continue on both the stocks as people are disappointed or rather do not expect companies in future. But as i have been mentioning since my last two posts that Banking sector will out perform the index and we saw that for 3rd consecutive trading session. Mid-Cap and Bank Nifty ended in +ve zone while nifty closed marginally on negative side. As i have mentioned yesterday that some cool-off in inflation and a marginal recovery in the IIP has changed the mood around the tables of brokers. On other side banking sector will announce results pretty soon starting with HDFCBANK in 2 days and its expected by many brokers that pvt. banking is expected to post results above expectations. Talking about utilities sector such as power and energy than they might post poor results but that will be good opportunity to buy for long terms as rate hike is expected by almost all state by this quarter so that will bring some cheers to power companies in next quarter result.
Coming to technicals yesterday i did mention nifty to resist near to 5710-5734 and today we saw profit booking exactly from the intraday high of 5732. BINGO!!!! So what next for short term traders ??? Technicially nifty should take support at 5663 (closing basis) while on intraday basis 5610 may act as a strong bounce back point. So if you have exited in the range of 5710-5734, its tym to enter back at CMP to every dip to 5610…Keep a positional stop loss of 5550 with targets of 5850 upto 6150-6170