>DAILY MARKET & TECHNICAL OUTLOOK (ICICI DIRECT)

Key points

■ Market Outlook — Open with a gap-up and trade positive
■ Positive —Rupee appreciating smartly
■ Negative — Triggering of margin calls likely today

Market outlook

■ The Indian stock market is likely to open with a gap up following the historic session that we witnessed yesterday. Indian bourses were locked in upper circuit and trading was halted yesterday for the first time in the history of the Indian stock markets. The markets gave big thumbs up to stable government formation, which is likely to expedite reforms and attract higher foreign inflows. We feel the markets can again get locked in a circuit if the Nifty surges another 300 points, which is likely today on the back of short covering due to margin pressure

■ The Sensex has supports at 14000 and 13700 and resistances at 14670 and 15110. The Nifty has supports at 4200 and 4050 and resistances at 4570 and 4660

■ Asian stocks were trading higher in the morning session. Asian markets, taking cues from US markets, posted gains in the range of 2- 3%

■ US stocks rallied on Monday as better-than-expected results from the No. 2 US home improvement retailer, Lowe's Inc, helped spark broadbased buying on hopes the recession is easing and consumer spending is stabilising. Investors’ optimism extended to sectors closely aligned with economic growth, including homebuilders, banks, energy companies and retailers

■ Stocks in news: M&M, Dr Reddy’s, Wipro

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