Market Walk!

The Indian equity market started off the week with smart gains as the NSE Nifty
managed to once again close above the 6300 mark. Sentiment got a boost after
heavyweights like Reliance Industries, HDFC Bank andWipro delivered better than
expected quarterly results. While ITC was inline with market expectations.

Todays upswing was so strong that barring the oil and gas index all the other BSE
sectoral indices ended with smart gains. The IT, telecom and the FMCG stocks led
from the front. The banking, power and realty stocks were among the other major
gainers.

Even the mid-cap and the small-cap stocks participated in todays rally.

Finally, BSE Sensex closed at 21,205 up 141 points, while NSE Nifty closed at
6,304 up 42 points over the previous close.

TCS, Wipro, HCL Tech, IndusInd Bank, SSLT, ITC, SBI, Ambuja Cement and Tata
Motorswere among the top gainers in the Nifty. On the other hand, Reliance
Industries, Tata Power, Grasim, Bharti Airtel, NMDC andCoal India were among the
top losers in the Nifty.

Meanwhile on the F & O side, the Option data is indicating that going forward 6299
will act as strong support and 6360 will act as strong resistance.
PE Option likely in focus-: 6200 PE has seen good build up in open interest and
6300 PE has also seen good build up.

CE options likely in focus: 6200 CE and 6300 CE

Nifty Levels to Watch Meanwhile Nifty made has again crossed 6300 levels largely
on the back of IT and to some extent Bank Nifty. For intraday nifty has strong
resistance around 6360 and if nifty sustains above this level next level to watch
out is 6390.

On the downside the nifty has strong support around levels of 6220 and if nifty
break this important support next support is around 6180.

Technically the markets are in wait and watch mode ahead of the RBI policy on the
28th Jan 2014. Lower than expected CPI ans WPI nos have made a strong case for a
neutral stance from the RBI. However in case RBI surprises with a rate cut then
markets couls be in for a big positive surprise.

However the chances of this look low. Also what the FOMC says on Jan 27 and 28th
Jan on further tapering will have a big bearing on the broad market sentiment and
banking stocks in particular. Hence one should expect a ranged movement ahead of
these important events.