Nifty ends higher on good global cues; metals lead

Equity benchmarks began the year 2011 on a positive note on Monday following strong global cues and continued the uptrend for fourth consecutive session. Metal, telecom, Anil Dhirubhai Ambani Group (ADAG), healthcare, realty, select infrastructure and financial companies' shares supported markets along with ONGC and Infosys.

Asian and European markets kicked off the year on a strong note. European markets like France's CAC and Germany's DAX were trading 2.1% & 1.4%, respectively, at the time of closing of Indian equities. Even Dow Jones and Nasdaq futures gained 0.6% each. Asian markets like Hang Seng and Straits Times closed 1.4-1.7% higher; Kospi was up 0.9% and Taiwan up 0.6%.

The Nifty also managed to end above 6150 level today. Daryl Guppy, founder and director of Guppytraders.com says he has a bullish view on the Nifty. ''As long as we stay at the moment above 5,900, the net allows that up sloping triangle pattern to develop which gives us an initial target around 6,800. In the first quarter, we are looking for it to move towards more than 6,800,'' he predicts.

Madhabi Puri Buch of ICICI Securities has a Sensex target of 23,000-23,700. ''We believe companies are going to post better-than-expected earnings,'' she said adding, ''The market will be primarily driven by earnings growth rather than multiple expansions.'' 

On risk factors in 2011, she said, rising crude price is one area of concern for Indian markets. ''The US discretionary spending is likely to increase,'' she added
 
There was a bit of volatility in markets due to sell-off in Wipro, Bajaj Auto, NTPC, TCS, Reliance Industries, Hindalco, HCL Tech and Suzlon Energy.

The 30-share BSE Sensex closed at 20,561, up 52 points and the 50-share NSE Nifty rose 23 points to 6,157. The broader indices outperformed benchmarks; the BSE Midcap Index was up 0.9% and Smallcap up 1.8%.