It was a quite but a solid start to the week. The Nifty did not look in any danger of a big correction today. It started closed with modest gains. Just in the middle of the day there was a period where it looked like it would give up most of its gains but that got arrested towards the end.
There was some support from large caps clusters today. Reliance started the day with five percent higher, after better than expected earnings on Friday evening. However, it finally got left with two point five percent of those gains.
Stocks like L&T, BHEL, Reliance Infra and JP Associates from the infrastructure basket looked good. HUL and ITC both those FMCG stocks also looked quite well today.
The Nifty’s gains were capped a little bit by selling in NTPC post results. DLF did not have a good session today. Sun Pharma and TCS were other companies which had fairly ordinary sessions.
However, the bigger problem is that that the market breadth is still not strong. The last couple of days despite the Nifty moving up, mid-caps have not kept pace. Today was yet another instance of that. The advanced decline line did not look very positive.
There were gainers though from aviation. Jet Airways and SpiceJet looked very good. Finolex and TV18 responded to good earnings. From the telecom space, Reliance Communications and Idea both were strong. There were names like Den Networks, JSW Energy, Kolte Patil which also had very good days.
With that, there were prominent losers too. Kingfisher had a bad day. Opto Circuits and Orbit Corp were both down sharply. IndusInd Bank and Pantaloon saw some profit taking. Some of the oil marketing companies like IOC which had run up on Friday also saw a bit of profit taking.
Over all, it was not a very eventful day. However, the Nifty is still holding that target of 6100. It is slowly but steadily inching towards that.