Perspective on Markets

By Shrikant Chouhan, Head - Technical Research, Kotak Securities:

The market opened higher and managed well to sustain above 7600 throughout the day. Such type of formations helps market to move upward and in the current scenario we can expect move towards 7670 or up to 7700. However, to move beyond 7700 the market will require solid news flow. Below 7600 it has support between 7550 and 7510. We like auto, PSU banks and Cement stocks with a short term to medium term purpose. Crude prices are falling which is grossly bullish especially for the Indian markets and that will help to the oil and gas sector. Our Indian Currency remained above the mark of 61, which is certainly not positive in the short term as it indicates at geopolitical tension or weak domestic cues.

Tomorrow, in the first half, the market may wait for WPI and IIP numbers.