Nifty tests 5350, Sensex holds 17600 ahead of inflation data

NEW DELHI: The 50-share Nifty is stuck in a 20- point range, trading a shade below its crucial level of 5,350 ahead of monthly inflation data for July, which will be out later today (11:30 a.m. IST).

Inflation has probably crept up in July as poor monsoons drove food prices higher, a Reuters polls showed, giving the Reserve Bank of India less room to cut interest rates to revive the flagging economy.

"The Nifty spot has been forming higher-tops, higher-bottoms since the last three trading sessions. The index is holding to its support level of 5,290 in rangebound trade," Sujit Deodhar, Head-Technical Analyst at Wellworth Share & Stock Broking Ltd, said.

"Technical indicator RSI is in a strong buy mode. Also, the short-term moving averages like 20 and 50 DMA have a positive divergence. So the probability of the index heading higher to test 5,450 levels can be ruled out," Deodhar added.

"The rupee opened at 1-week low as high crude oil prices continue to weigh on sentiment. The rupee was at 55.52/54 after rising to 55.59, versus 55.34/35 last close," Reuters reported.
"Foreign bank dealers say the market was short overnight and panicked to cover at open," the report added.

At 10:10 a.m., the 50-share NSE index was at 5,344.80, down 3.10 points or 0.06 per cent. It has touched a high of 5,356.45 and a low of 5,336.75 today.

The 30-share Sensex was at 17,638.89, up 7.56 points or 0.04 per cent. It has touched a high of 17,659.66 and a low of 17,600.02 today.

Tata Steel Ltd rebounded from its early morning lows of over 1 per cent, after reporting in-line consolidated net profits of Rs 598 crore for the quarter ended June 30, 2012. The stock was trading 1.7 per cent higher at Rs 402.50. It has hit a low of Rs 388.60 and a high of Rs 405.71, today.

The BSE Midcap Index was up 0.35 per cent and the BSE Smallcap Index moved 0.56 per cent higher.

Among sectoral indices, the BSE Oil & Gas Index was up 0.5 per cent, the BSE Metal Index advanced 0.44 per cent and the BSE Banking Index moved 0.40 per cent higher.

The BSE Power Index declined 0.50 per cent and the BSE FMCG Index was down 0.34 per cent.

Sun Pharmaceutical (2.4 per cent), Sesa Goa (1.8 per cent), Sterlite Industries (1.7 per cent), Maruti Suzuki (1.3 per cent) and Tata Power (1 per cent) were the major Nifty decliners.

Coal India (2.1 per cent), Tata Steel (1.7 per cent), M&M (1.1 per cent), Tata Motors (1.05 per cent) and ICICI Bank (0.7 per cent) were the major Sensex gainers.
The Economic Times News
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