Markets Hold Back as a Breather

Market overview: 12th March 2015
Markets breached its 3 days consecutive fall and rebounded to close in green. Both Nifty and SENSEX opened with a gap up and remained range bound throughout the day. The whole move was led by strong domestic and sector specific cues. Finally Nifty closed at 8776 i.e. up 76 points and SENSEX closed at 28930 i.e. up 271 points from the previous close.
After S&P announced its probable downgrade, India now pitches Fitch for its rating upgrade. India puts forth its Budget measures to cut fiscal deficit and promote investments.
International Monetary Fund lifted up its Indias growth forecasts for current year to 7.2% and up to 7.5% in 2015-16.
CPI data is out which rose to 5.37% as against 5.11% in the prior month amid hike in food inflation specifically vegetable prices. However, IIP reported 2.6% growth as against estimates 0.47%.
To boost the local Steel manufacturers India's trade ministry planned imposition of anti-dumping duties on industrial grade stainless steel imports from China ranging from $180 to $306 per tonne, Positive for steel manufacturing company.
Rajya Sabha was to vote for raising foreign direct investment limit from 26% to 49% in insurance sector by late evening today.
Smallcap and Midcap remained positive throughout the day. Both Smallcap and Midcap outperformed the benchmark indices with 1.59% and 1.56% up. Market breadth was positive with 1643 Advances and 1229 Declines.
Among sectors Infra led the up move with 2% gains. Auto, Commodities, Consumption, Energy, FMCG, Media, Metal, Pharma and Realty closed up with 1% gains. All other sectors closed in green.
CAIRN, Sesa Sterlite and NTPC were the top gainers while Tech Mahindra, Mahindra & Mahindra and Bajaj-Auto were the top losers.

Option Data
Highest OI was witnessed at 9200 CE & 8800 CE and 8700 PE and 8300 PE. As per options data 9200CE and 8700PE are likely to remain in focus for March series.
Global Updates:
U.S. continued falling for the second consecutive day ahead of concerns over the timing of interest rate hike by the Federal Reserve. Rising Dollar reduces the earnings outlook.
Bank of Korea announced a surprise interest rate cut boosted Asian markets. Better than expected Australia jobs data added to the sentiments. Nikkei is up 1.7% while Hang Seng posts marginal gains of 0.37%.
European markets show mixed sentiments with rebound in mining but bad industrial output figures which fell to 0.1% as against 0.2% forecasts.

Market Overview for 13th March 2015
As stated Nifty took a support at 8700 mark and rebounded to close above 8750. Now if Nifty continues with the upward rally we hold 8815-8845 as the next immediate resistance followed by 8890-9000. On the contrary if the up move acts as a breather for another fall we hold 8660-8600 as the support provided Nifty breaches 8700 on closing basis.
Stocks to watch for: Apollo Hospitals and Divis Laboratories on the upside while Ambuja Cements and Federal Bank on the downside