Markets open higher on back of positive cues from Asia and Wall Street. The Nifty has advanced 66 points to 6025 and the Sensex has jumped 220 points to 20,070.
While markets have made a firm opening, a stiff resistance is seen around 6025 levels according to the technical charts. Technical analyst Ravi Nathani said, “market is trading near its resistance level, traders should trade with strict stoploss as markets could correct post a flat trading session. Strategy would be book profits at every rise and wait for another wave of correction, Resistance seen at 6026 and 6066." Prakash Gaba said "technically the up move still looks reactive in nature and if it continues then the market is likely to find stiff resistance around 6020"
Wall Street saw an early Christmas, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite surged more than 2% bolstered by positive data from jobs sector, productivity and construction spending. Furthermore, possibility that Euro zone crisis might get resolved lend support.
In Asia, Hong Kong’s Heng Seng has risen over 1% buoyed by resource producers and banking shares, China's Shanghai Composite has edged up 1.2%. Japan's Nikkei 225 has climbed higher by 1.85 led by exporters. Strait Times has moved up 0.5%, Seoul Composite has surged 0.8%, Taiwan Weighted has jumped 0.9%.
Realty stocks were continuing their up move helped by bargain hunting after stocks plunged between 20-40% last week. Anant Raj Industries (up 5.2%), D B Realty (up 5%), Ackruti City (up 4.7%) have been leading the gains.
Banking shares remained in focus after government approved around Rs 6000 crore capital infusion to improve capital adequacy and increase government's stake in banks. Bank of Baroda (up 4.2%), IDBI Bank (up 2.2%) and Yes Bank (up 2.2%) have been the top gainers.
ONGC is in the limelight after it received a share split nod from the government and bonus issue. Also, another stock Welspun India has advanced 0.7% may after it announced that it will foray into tech textiles and invest Rs 700 cr.
The stock has risen 2.8%. Besides, ONGC, Hindalco (up 2.7%), Sterlite (up 2.3%) and ACC (up 2.3%) are the top gainers on Sensex. Hero Honda (down 3.2%), Bharti Airtel (down 1.4%) and NTPC down 0.8%) are the main losers.
