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'Vote on Account may cause volatility in markets'

Ranak Merchant, Technical Analyst - Strategies, Sushil Finance says that vote-on-account on Monday can cause some volatility in markets going ahead.

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Manu Kaushik Mumbai
Last Updated : Feb 14 2014 | 2:06 PM IST
Market is trading higher in a volatile session that saw key benchmark share indices swing between gains and losses in the day's trading session.

The Wholesale Price Index (WPI)-based inflation softened to 5.05% in January from 6.16% in December, helped by moderating food prices, government data showed on Friday.

Index heavyweights TCS and Infosys edged 1-2% higher supporting the benchmarks to sustain in the green zone. Tata Motors, HDFC Bank and Reliance Industries are the top gainers.

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Ranak Merchant, Technical Analyst - Strategies, Sushil Finance says that vote-on-account on Monday can cause some volatility in markets going ahead. She also suggests how are M&M and SBI placed ahead of their Q3 numbers today.

Nifty closed tad higher than 6,000 mark yesterday and weakness set in again after initial gains. What are the levels to watch out on key benchmarks?
The zone of 6100-6130 continues to pose stern resistance for the benchmark Nifty and a sell off therefrom led to a retest of its 200 Day EMA and a brief breach of the 6000 mark. On the downside the zone of 5950-5970 offers good support and sustenance of the same could lead to a reattempt of bounce. However a break above 6150 remains imperative for the bounce to gain momentum. Some volatility may seep in due to Vote on Account on Monday.

Do charts indicate volatility on benchmarks ahead of Vote-on-account next week?
Yes, the Vote on Account may lead some volatility as what is witnessed currently is a range bound trade broadly between the 5950 - 6150 levels for Nfity (spot). Banknifty in particular has seen sell off below its turning point level of 10297 and support appears to emerge around 10000 mark. CNXIT has seen a good move and 9950 would be a short term resistance.

How are M&M and SBI placed placed technically ahead of their Q3 results?

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First Published: Feb 14 2014 | 2:02 PM IST

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