Positive start for FY13…Nifty ends above 5300

The Indian stock markets started off FY13 on a positive note as the benchmark indices ended almost near days high on Monday. Bulls extended its winning streak to third straight trading session. After opening near days low, the benchmark indices were on an uptrend in the first half. However, a sharp dip in the European indices dampened the sentiment. The decline was nevertheless short lived as key indices bounced back led by the Power, Capital Goods, Realty, Banking and Consumer Durables index. Market participants seem to have ignored the manufacturing data. The country’s manufacturing activity slowed in March. HSBC's manufacturing purchasing index slowed to 54.7 in March from 56.6 in February. Technically, the NSE Nifty just managed to end at the 50 DMA. A higher opening in today’s trading session indicates bullish implication of hammer which it had formed in the previous week. Major resistance is seen at 5490 levels. The BSE Sensex ended at 17,478, up 73 points or 0.4% over the previous close. It had earlier touched a day’s low of 17,382 and a day’s high of 17,530. It opened at 17,429. The NSE Nifty settled at 5,318, up 22 points or 0.4% over the previous close. It earlier touched a day’s low of 5,279 and day’s high of 5,332. Globally, the European markets started off with positive bias, however gave up early gains after the manufacturing PMI dropped to a three-month low. On the other hand, the unemployment rate in the euro zone increased to 10.8% in February, compared to 10% in February last year. The FTSE index in UK was flat, CAC index in France was down 0.2% while the DAX index in Germany fell 0.4%. Equity markets in Japan ended with slender gains after Moody’s raised the country’s credit rating outlook. The Nikkei index rose by 0.3%. However, stocks in Hong Kong fell for a fourth straight session, the Hang Seng index fell 0.2%. The US markets closed with a positive bias on Friday, the Dow Jones ended higher by 0.5%, the S&P 500 index ended higher by 0.4%. While the Nasdaq Composite index ended lower by 0.2%. The INDIA VIX on the NSE plunged by 7% to close at 20.88. It hit day’s low of 22.88 and hit intra-day high of 22.94. Among the BSE sectoral indices, the Consumer Durables index was the top gainer, up 3.9%, while the Power index gained 2%. The Capital Goods index was up 1.7% and the Realty index ended higher by 1.5%. The BSE Mid-Cap index gained 1% while the BSE Small-Cap index ended higher by 1%. On the other hand, BSE Oil & Gas index declined 0.3% while BSE Metal index fell 0.2%. "In the coming week market direction would depend on the results season which would kick off with Infosys announcing its earning on April 12. IIP and inflation also would play an important role. The RBI meet on April 17 will be the biggest event for our market. The remaining Budget session will be a stormy affair if indeed there is a fuel price hike," says Amar Ambani, Head of Research, IIFL.