SENSEX, NIFTY ABOVE 20 DMA AFTER 18 SESSIONS

US markets closed higher by half a percent, on the back of upbeat economic data and corporate results. While housing starts rose to their highest level in six months, January industrial production too topped the expectations. Jan Fed meeting minutes, which raised 2010 GDP growth forecast, also boosted the Sentiment. Dollar strengthened and so did commodities, especially oil, which is a rare instance.



Our markets put up a good show in yesterday’s trade by rising more than a percent for the second consecutive day. More importantly, this came on the back of higher volume of more than 1 lakh crore. FIIs bought index futures worth Rs. 805 cr. The cash provisional figure stood at positive Rs. 520 cr for FIIs and Rs. 197 cr. for DIIs. Talking about charts, Sensex as well as Nifty closed above their respective 20 day simple moving averages after 18 trading sessions. A second consecutive close above the average will give more credence to the current upward move. 4951, the previous top, remains the resistance while on the downside immediate support is placed around 4845.