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Stock indices may open slightly up due to improved sentiment after the National Stock Exchange's 50-share Nifty closed above its crucial resistance of 5850 Thursday. After topping the 5850-mark, short covering led the index up further in the latter half of the session. Although in the very short term we may see a pullback in the markets due to the oversold nature of the broader markets we maintain our bearish stance in the medium term for a target of 5550-5600 (on the Nifty).
We sees medium-term resistances for the Nifty between 5890 and 5950. Caution ahead of the weekend and US February non-farm payrolls data may restrict the upside in indices yesterday. Mahindra & Mahindra is likely to find support on news it has reached an agreement with its Nashik workers' union, following which the call for a strike on Mar 11 has been called off. Rashtriya Chemicals and Fertilizers will be in focus as the government will offload 12.5% stake in the company through the offer for sale route yesterday. The floor price for the offer has been fixed at 45 rupees a stock, a 2.5% premium to its closing price of 43.90 rupees on the NSE Thursday. Peninsula Land stocks may rise on report Aditya Birla Group's real estate fund is set to buy 50% stake in the company's 30-acre Pune township project for over 1.15 bln rupees. Bharti Airtel stocks could get support from media reports that the company has started the process to sell up to 25% stake in its direct-to-home television arm.
