Nifty faces resistance at 5730

Nifty faces a resistance at 5730 during the trade today. After a good rally during the last two days which has added around 200 points to Nifty seems fizzling today. After a small gap up at 5780.65, Nifty moved higher and it was expected that Nifty will face a resistance around 5740 or 5750 which is supposed to be the immediate resistance. But before that the Nifty faces a resistance below these levels and made a high of 5732.15 in early trade. After the high of 5732.15, Nifty tries 2-3 times during the day to cross this level and try to meet 5740 but it is sold out below that levels. Nifty made a lower highs during the day which is a weak signals. Considering the weakness, we had also given a sell call in Nifty at 5720 with a target of 5680. Immediate after our call the Nifty slide and touched a low of 5669 which was much lower to our expectation, which again shows a weakness in the market. We had given the call around 12:50.
After making a low, Nifty showed a recovery and managed to go up to 5725 again but again fell to close flat at 5688.70. Sensex also closed in red.
Today Midcap stocks showed some buying and Midcap closed in green. In view of the chart analysis, it can be said that tomorrow Nifty can slide further and find a new base where from it can bounce back. We had already made a strong support of 5500. But this is too deep. So if Nifty wants to go further up, it has to make another base which should be any levels around to 5600 or 5650.
Traders are advised not to take any long positions in any stock till Nifty gives another sign of going up. This is advised because the global markets are now coming to correction and many hedge funds in US and Europe had suffered heavy losses in Gold bets! The effect of Gold turmoil can be seen in the next few trading sessions and how serious is the effect, no body can say except the time!
Tomorrow's strategy should be to avoid long positions in Nifty. Short Nifty if it trades below 5670 with a target of 5610 which is the support in our view.
As per the data sheets, today is a long list of stocks where long unwinding has taken place.

JP Associates

JP Associate is trading at 67.20 (at 11.08 AM) now. The stock has opened at 65.70 in the morning in NSE and traded strongly with good volume. The stock is trading firmly with the top 5 gainers of the NSE. The stock can go upto 75 in April. The resistance of the stock is at 69. Once this is crossed, the next resistance would be 72 & 75.
On 28th March, the stock closed at 65.45 with a gain on intraday basis.
This stock has became strong if seen for last two trading sessions. One can expect a good upside in this stock.

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China's Manufacturing data shows good indications

China’s manufacturing expended at a faster pace last month, indicating a recovery in the world’s second-largest economy is sustaining momentum. (As per Bloomberg report)

The Purchasing Managers’ Index was 50.9, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing, an 11-month high and up from 50.1 in February. A separate gauge from HSBC Holdings Plc and Markit Economics rose to 51.6 in

A pickup in manufacturing will help the new government under Premier Li Keqiang sustain a rebound after factory output had the weakest January-February growth since 2009 and Goldman Sachs Group Inc. questioned the strength of exports. Faster expansion may also fuel inflation, spurring tighter monetary policy from the central bank.

“We are clearly in a lot better state than we were at the end of last year,” Alistair Thornton, a Beijing-based economist at researcher IHS Inc., said in a Bloomberg Television interview, terming the momentum “modest.” At the same time, the economy faces “fairly large headwinds” including property curbs and tighter supervision of so-called shadow banking, he said.

The surveys compare with a quarterly report showing confidence among big Japanese manufacturers improved by less than economists estimated. Another HSBC survey showed South Korea’s manufacturing expanded at a faster pace in March.

China’s largest cities, including Beijing and Shanghai, tightened rules on home purchases, effective yesterday, after the central government called for stepped-up efforts to cool the property market. The nation’s banking regulator told lenders last week to limit investments of client funds in debt that isn’t publicly traded and to isolate such risks from their operations.

Economic growth may have accelerated for a second quarter to 8.1 percent in the first three months of this year, according to the median estimate in a Bloomberg News survey last month.

dailyfnodata News: Market may open lower

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