The relief rally may continue today as markets are set open on a positive note after clocking 1.5% gain Yesterday. The Nifty futures on the Singapore Exchange were up 13 points, at 5,565.
Derivative analysts Nifty has bounced on back of short covering and it may face resistance at 5600. Market analysts expect range bound trade for some time as GDP growth for the fourth quarter was at 7.8% below analyst expectations of 8.2%. Foreign Instructional Investors have turned net buyers in the past four sessions as they have been net buyers of shares worth Rs 1,911 crore.
Ridham Desai, Strategist and Head of India Equity Research said that the second half of FY12 will be much better than the first due to the base effect. There will be mild acceleration in the next two to three quarters, which will get more pronounced in the second half.
Across Asia markets were trading mixed. China’s manufacturing index slipped to 10-month low of 51.6 in May from 51.8 reported in April. China’s Shanghai Composite was off 0.4% and Hong Kong’s Hang Seng declined 0.1%. Japan’s Nikkei Stock Average was flat at 9,696.
Auto makers such as Tata Motors and Maruti Suzuki will be in focus this morning ahead of the monthly sales numbers.
