Nifty tests 5500; oil & gas, metals, banks down

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The benchmark indices slipped further as oil & gas, metals and banking stocks felt some selling pressure. However, buying interest was seen in power, capital goods and realty stocks. The NSE Nifty tested its psychological 5500 mark.

Reliance, ICICI Bank, HDFC Bank, HDFC and TCS were the negative contributors to the Sensex. The midcap and smallcap indices were up 0.50% each.

The Sensex was down 89.26 points or 0.49% at 18113.15, and the Nifty was down 28.20 points or 0.51% at 5503.75.

About 1321 shares have advanced, 1078 shares declined, and 1000 shares are unchanged.

According to trader Atul Suri 5100 is likely to be a strong support for the Nifty. In a surprise move, the NSE benchmark mark index is up nearly 19% this year amid concerns of the economy slowing down and general gloom and doom. The bullishness, which has been global phenomenon, may lead to a new high in equity markets this year, believes Suri. "The all-time highs seen in sectors like cement, auto is very encouraging," he adds. 

According to Suri, the break out of 5400 has confirmed the bullish trend. "The riskier assets have rallied the most in the current upmove," he says adding, "fall in defensives indicating high risk appetite among investors."

Top losers on the Sensex were Hindalco at Rs 156.50 down 3.57%, Coal India at Rs 327.65 down 3.48%, Sterlite Ind at Rs 130.25 down 3.34%, Reliance at Rs 813 down 2.76% and Tata Motors at Rs 279.50 down 2.41%.

Index heavyweight Reliance was trading at Rs 813.00 down 2.76% from its previous close of Rs 836.05.

Most active shares on BSE were SBI, Reliance Power, Adani Power, Reliance and Reliance Comm.

Top percentage gainers on the BSE - KCP, Network 18, De Nora India, Dai-Ichi Karkar and Artson Eng were up 14-15%.

Top percentage losers on the BSE - Samrat Pharma, Saregama India, Kanchan Int, LGS Global and Accentia Techno were down 6-10%.

Nifty flat; Hong Kong, Tokyo, South Korea at 6-month high

The Indian market opened on a negative note tracking weak global cues. The Nifty is now trading at the highest level in more than six months. China reiterated that the country will continue to invest in European government debt to help resolve Europe's debt problems. Key benchmark indices in Hong Kong, Tokyo and South Korea also rallied to six-month highs.

The Sensex was down 36.33 points or 0.20% at 18166.08, and the Nifty was down 16.15 points or 0.29% at 5515.80. About 748 shares advanced, 441 shares declined, and 2210 shares remain unchanged.

In the largecap space, BHEL, Jindal Steel, Tata Power, NTPC and Larsen were up 1-5%. Coal India, Sun Pharma, Sterlite Industries, DLF and Reliance were down 1-3%.

Movers & Shakers

Top gainers on the BSE Midcap: Lanco Infratech, Godfrey Phillip, Marico, Ruchi Soya and Puravankara Projecst were up 4-6%.

Top losers on the BSE Midcap: India Cements, Voltas, Kirloskar Oil, Shree Global and Blue Dart were down 2-3%.

Top gainers on the BSE Smallcap: EPC Irrigation, Great Offshore, Symphony, Sundaram-Clayton and OCL Iron were up 7-20%.

Top losers on the BSE Smallcap: Borosil Glass, Guj Amb Exports, Foseco India, Shree Ram Urban and PFL Infotech were down 5-14%.

Chart Check

The Nifty closed above psychological resistance levels after sentiments turned bullish across the Asian markets. The daily momentum suggests that the NIFTY has immediate resistance at 5560. If it breaks 5560 we could see the next key resistance levels of 5640 or even 5703. On the downs side, the NIFTY has found the support at 5460 and 5410 levels.

The currency market is closed today. The euro slid 0.4 percent to around $1.3015 as uncertainty over the bailout package put the single currency under renewed pressure.

The US markets closed lower. The Dow logged its sharpest decline this year as the deadlock over the Greece debt situation made investors nervous. Apple tumbled in trade closing below 500 dollars a share, thereby weighing heavy on the S&P and the Nasdaq.

Data To Watch

Australia: Unemployment Rate Jan (Exp 5.3%, Prior 5.2%)

US: Minutes of FOMC Meeting

US: Initial Jobless Claims (Exp 365K, Prior 358K )

US: Housing Starts Jan (Exp 675K, Prior 657K)

US: Housing Starts MoM Jan (Exp 2.7%, Prior - 4.1%)

Market cues:
FIIs net buy USD 232 million in cash market on Jan 14
MFs net buy Rs 52 crore in cash market on Jan 14
Sensex rallied 17.5%, Nifty up 19% YTD
Dow Jones has steepest fall in 2012
Express intent to expand investment in Europe
Eurozone finance officials looking to delay part of Greek bailout until after the country's April elections, without triggering a default.

F&O cues:
Nifty PCR rose to 1.61 from 1.47
Total Put adds 52.1 lakh shares, call sheds 15.8 lakh shares
Nifty 5300 Put, 5400 Put and 5200 Put seeing highest Total OI
5500 Put saw selling; adds 33 lakh (166%) shares in OI; prem down 66%
5600 Put saw selling; adds 15.20 lakh (400%) shares in OI; prem down 54.5%
5800 Call saw buying; adds 2.2 lakh (18.7%) shares in OI; prem up 106.5%
5700 Call saw buying; adds 16.2 lakh (53.5%) shares in OI; prem up 152%
5600 Call saw buying; adds 10.19 lakh (23.7%) shares in OI; prem up 180.5%
Stock futures OI adds 4.2 Cr shares in OI
Nifty future sheds 15.3 lakh shares in OI
Nifty Feb futures trading at 20.6 premium versus 24.3 premium to spot
India VIX closed at 22.1 down by 2.69%