Anagram Says
Dow, after trading in red for better part of the day, managed to close marginally in the green on the back of a late rally in baking shares after Senate Banking Committee Chairman Christopher Dodd released a proposed financial overhaul bill that “did not offer any surprise for the sector”. Earlier European markets closed with losses of more than half a percent on the back of monetary tightening worries from China to combat rising inflation and persistent Greece woes. Dollar strengthened against the Euro while commodities ended lower.
It was one more dull day for our markets as the benchmark indices, after intraday zigzag, came back to where they were on the previous day on close. Broader market however continued to bleed. While Nifty is very near to high of 5147 made on 8th March, Nifty Junior index is down more than 3% from that level. WPI inflation for February, which shot up to 9.89%, also weighed on the sentiment. Software stocks however closed with smart gains on the back of robust advance tax figures from TCS and Infosys. 5092 continues to be immediate support, on a sustained trading below which leveraged long positions should be either closed or properly hedged. On the upside, a close above 5147 is required to take the market out from this high gravity zone. US housing starts and Fed rate decision will be the key global events to watch out for today.