Nifty eyeing 4,300

The markets are likely to scale higher levels, as overall sentiment optimistic. The markets opened on bullish note on 21 May and settled with strong gains with the Nifty striking all time high of 4,269.35. It settled 46.40 points higher at 4,260.90. The gains came on the back of higher turnover, which indicates that fresh buying is taking place at higher level, which will keep the sentiment positive. The total marketwide turnover on 21 May was Rs 46,560.99 crore, higher than Rs 44,316.68 crore on Friday (18 May).

From here, the Nifty is likely to witness resistance in 4,275 to 4,300 range. While support emerges at 4,225 and 4,200 levels, on the lower side. A rally from here onwards must be accompanied by higher volumes and increased open interest if the upmove is to sustain in the near term.

Local bourses tracking global markets in similar direction over the past few months. These is ample liquidity in markers across the globe.

Asian markets opened on a firm note. The Nikkei share average rose 0.60% or 105.10 points at 17,661.97 soon after the start of trade on Tuesday as Sony Corp. continued its recent rally but KDDI Corp. and others trimmed recent gains.

Taiwan's Taiwan Weighted advanced 0.64% or 52.07 points at 8,193.66, while Singapore's Straits Times gained 0.71% or 24.97 points at 3,539.46. South Korea's Seoul Composite rose 0.45% or 7.34 points at 1,635.54

The Standard & Poor's 500, the broadest measure of the US stock market and the one most closely followed by the professionals on Wall Street, closed just shy of a record high Monday as fresh takeover announcements lifted US stocks. It gained 2.35 points, or 0.2%, to end at 1,525.10 points. Earlier, the index temporarily topped its 24 March 2000 record close of 1,527.35, breaching 1,529.

The blue-chip Dow Jones Industrial Average fell 13.65 points, or 0.1%, to 13,542.88. The technology-heavy Nasdaq Composite Index rose 20.34, or 0.8%, to 2,578.79. The dollar rose to 74.24 euro cents from 74.04 at Friday's close in New York, and to 121.50 Japanese yen from 121.12. Crude prices soared today and crossed $66 per barrel. Reports of fresh violence at Nigeria, Israel and Lebanon coupled with US refineries increasing production to meet the coming gasoline summer demand perked up crude prices. Crude-oil futures for light sweet crude for June delivery closed at $66.27 per barrel (higher by $1.33 per barrel or 2.05%) on the New York Mercantile Exchange. The expiration of the June crude futures contract tomorrow also likely helped exaggerate the move in oil. Any sharp rise from these level, may put brakes to the ongoing rally.

However profit booking in the later half of the day’s trading session, cannot be ruled out, after the Nifty’s smart rally of around 17.25% from a recent low of 3633.60 on 2 April 2006.