Higher inflation is ultimately bad news for the economy. This week is very important for the markets as major corporate like Infosys, Reliance etc. are supposed to declare their quarterly results, which will guide the market to set the trend.
BSE 15,750 is a break even level and below this level the important support level is 15,750 and for upside 16,350 is important level to cross, Agarwal said.
Investors are advised to adopt wait and watch policy till the result announcements.
Infosys result on April 15 will have its bearing on markets as well. He also added that if Nifty manages to cross 4800 then Nifty may touch 4900 level and sensex may go up to 16000 to 16200 level.
We are bullish on mid cap banks like Bank of Rajasthan, Dena Bank, Development Credit Bank. Other stocks to be watched out include Punj Llyod and Aban Offshore.
The inflation numbers grew beyond the market expectation to 7.4%, the market took the hit in the morning session. But with expectations that the Government will take measures to contain increasing inflation in the country, we may see some directional moves in the market in coming weeks. Better than expected IIP data which was at 8.6 %( beyond the market expectation of 7.2%) helped the Capital goods, Consumer goods and the Consumer non durable goods sectors which made tremendous growth, lend support to the market. We saw value buying in Reliance Industries, Cairn, L&T, BHEL and Tata Power which were beaten down in previous trading sessions. The trend may continue in these stocks for a couple of trading sessions. The market will take a directional move after the announcement of Infosys quarterly numbers. Nifty has support at 4725 and 4665 while resistance is seen at 4845 and 4900 levels within which the maket may trade on Tuesday.