The first day of March was a blue chip day. Tata Motors climbed 12%, Tata Steel, ICICI Bank, Maruti, Mundra, HDFC Bank, Crompton, Sesa Goa, Jindal Steel, JSW Steel, Sterlite were all in good fettle. The market was also encouraged by strength in the budget announcements.
Nifty and Sens*x, both the major indices were strong throughout the day. And even though the Nifty had difficulty climbing above 4999, a psychologically important barrier, a push late in the session managed to get the job done. By doing so, the Nifty achieved a net gain for the month.
And gains were made despite a stronger U.S. dollar and the earthquake in Chile. The Chilean catastrophe drove prices of copper higher since Chile is a major world exporter of the metal and the mines are generally closed as a result of the quake.
Nifty managed to close above the crucial 50 Day EMA and is now poised for a greater run up. A close above 5023 on the nifty spot signifies an intermediate trend reversal which could lead us to 5050-5076-5118-5182 levels. The global cues are pretty decent too with Europe closing deep in the green and Dow up by 40 points (as at midnight – 0008 hours on 3rd March 2010).
Standard Chartered Bank is to declare its results tomorrow and the market is quite buoyant on the results. Lufthansa Airlines posted better than the very bad results expected and this fueled the rally in the DAX.
Hangseng after scaling + 440 points yesterday compromised around 150 points today but closed below the psychological mark of 21000.
Unless something extremely volatile or unforeseen happens during the next 9 hours, Nifty should have a decent start and we could see an open around 5030 levels.
So, we’ll take the Nifty’s cause from there to wherever it takes us. Do not have pre conceived notions about nifty’s direction either way. Be guided by the market moves and remember that don’t try to get in at the bottom nor exit at the top. Moderate trades will yield the best results. All the best and Happy Investing.
CAclubindia
