Market Setup

As predicted,NIFTY broke 9900 yesterday but later recovered to close above 9900. That’s a huge positive. As the tensions ease along Korean peninsula there is a chance that today might be a day of recovery. Asia is looking much better today, trading flat to positive. That will have its impact on India and NIFTY might open at around 9920 levels. It has a leg to go up to 9980 and make an attempt or two to break into 10,000.
Infact there is a 50% probability that NIFTY might cross 10,000 today. On the downside 9850 will be a strong support to work with. Yesterday could have triggered a lot of short positions and if the NIFTY goes up these shorts might run for cover and that is one singular factor which will take the NIFTY up today. So, today could be the day when NIFTY will take a big step towards regaining the 10,000 mark. Will it succeed or not is 50-50!

News Leading Market

Reliance Capital will be the stock of the day with some company fundamentals getting rejigged. Gujarat Govt’s textile policy giving relaxations and subsidies means textile stocks might see some green. Also another positive is Govt has decided to postpone the additional GST cess to be levied on luxury cars till the festival season is over so that it doesn’t affect the demand for these cars. This will have a different impact on different 4 wheeler car manufacturing stocks.