Market Mantra: The Nifty Should Rebound from 5220

The markets as expected, are trading under pressure below 5400, since sometime. A disappointing budget added fuel to the fire...

Yesterday, a positive start soon turned into negative and sustained selling dragged down Nifty to a low of 5238. It made an intraday high of 5340 and finally closed at 5257 with a net loss of 61 odd points. Inability to sustain above 5500 and profit booking is dragging it down to close below 5400 is a cause of concern. Market which was witnessing volatile moves due to multiple economic events plugged together has started a south ward journey. Now Nifty is finding next major support around 5150-5170--5250--5220 ranges which I do not think will break today. However, the Nifty has to close above 5285, to give some hope for the bulls.  I think the markets is expected to rebound from the support of 5220-5250, as is seen from the morning trends. Please do not play in these kinds of markets without putting appropriate stop losses.
RESISTANCES: 5280 & 5300
SUPPORTS: 5250-5220 & 5180.
US markets closed flat to positive cheered by news of Dividend by Apple Inc. Bond yield dropped sharply as economist favoured that US macro indicators will continue to strengthen.

Domestically I feel that Budget hangover which gripped the markets  on the issue of big bang reforms has its upside capped. Also, the deficit situation looms large and subsidies are likely to hit central government in the long run if oil prices in retail outlets is not adjusted to global crude prices. Having said that: this is is expected to fade away in the coming days, as the investors will now focus basically on the quarterly earnings and the next move by the RBI. The investors can start buying slowly as the market again attempts to close above 5400 (Keep your stop loss ready). 

The Nifty is now trading at 5240 and I hope it would close in the GREEN today above 5285 which remains the PIVOT POINT.

Today's call for the Paid Service members: Buy Voltas Ltd at Rs.121, T--Rs.126, SL--Rs.117.  The budget provisions are slightly positive to neutral for the company, as excise duty hike by two per cent will be passed on to consumers. However, increase in service tax from 10 per cent to 12 per cent will straight away affect the end consumer, right from lower middle class to upper class of the society. Also, removal of customs duty on LCD and LED panels and mobile phones parts, and the five year extension for weighted deduction of 200 per cent on R&D expenditure for in-house facilities are welcoming decisions is positive for the consumer good sector as a whole. Moreover, the benefits announced for key sectors like infrastructure, agriculture and education are bound to improve the overall economic scenario and this is expected to influence the consumer goods industry, positively.
Voltas is one of the world's premier engineering solutions providers and project specialists. Founded in India in 1954, Voltas Limited offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration,  elctro-mechanical projects, textile machinery, mining and construction equipment, materials handling equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality. 
Premium Members were give a buy on IFCI Ltd at Rs.41.70--42, T--Rs.45, SL--Rs.39. This is BTST.