Nifty inches closer to 5900 mark

Markets continue to scale higher on back of gains in metal stocks and heavyweight Reliance Industries. Nifty is just 10 points away from the 5900 level, the index has risen 62 points to 5891, benchmark Sensex has risen 193 points to 19,611.

Shailesh Kadam from PINC Research says, "traders have started taking the view that it will be difficult for Nifty to cross the 5900 in the short term, hence we are seeing some writing activity at this strike Call option." While 5900 may be a near term resistance due to call writing, markets are surely headed towards 6000 levels and beyond adds Kadam.

Besides BSE Auto and Realty indices which have gained almost 1% each, metal index is shining in trade today, the index is up 1.9% at 16,209.29.

From the metal space Tata Steel has risen 2.6%, to Rs 611, Hindalco and Sterlite have also soared 2% each. Kadam says, "metals should consolidate now. But it is surely a sector which is a buy on dips."

Heavyweight Reliance Industries (RIL) is buzzing again in trade today, RIL has risen 1.7%, to Rs 1,017.5."We could see Reliance touching Rs 1050 in the short term. One can surely go long at these levels but the investment horizon should be around three months to get handsome returns," Kadam says.

Ranbaxy is up 4.9%, followed by Ambuja Cements, up 4.6% and ACC, up 2.8% and are top gainers on Nifty.

HDFC, IDFC and Maruti are the only three stocks which are trading in the red on Nifty.