The NSE's 50-share Nifty managed to shut shop in the green on Monday despite extreme choppiness in trade. Meanwhile, the BSE's 30-share Sensex witnessed marginal loss in trade. The markets got off to a subdued start underpinned by the global weakness. However, strong monthly sales data from auto majors and an up-tick in the US index futures in the morning trades lent good support to the local indices. But the index turned choppy in late morning trades. The benchmark index once again edged higher in the afternoon trades tracking surge in the Purchasing Managers' Index (PMI) to its highest level in 18 months during the month of January and strong exports data for the month of December. The Nifty spent most part of the day near the psychological 4900-mark and finally closed just a tad below this level. Shares from consumer durables space were the star performers of the day followed by healthcare, auto and metal stocks. On the other hand, fast moving consumer goods, information technology and banking stocks saw some profit booking in trade. The second line stocks hogged the limelight throughout the day, which helped the broader indices to outperform the benchmark indices. Finally, the BSE Sensex shed 1.93 points or 0.01% to close at 16,356.03 while the S&P CNX Nifty rose 17.65 points or 0.36% to finish at 4899.70.

The US markets got some respite on Monday and all the major indices were able to move up by more than 1%.It was the few encouraging economic reports that lifted stocks higher, the Institute for Supply Management (ISM), said its index of US manufacturing activity grew for a sixth straight month in January to the strongest level since August 2004. The ISM's manufacturing index jumped to 58.4 in January from 54.9 in December, above than expected. The trade group said factories increased production as customers' replenished inventories. The Dow Jones Industrial Average surged by 118.20, or 1.17%, to 10,185.53. The broader Standard & Poor's 500 index was up by 15.32 points, or 1.43%, to 1,089.19 while the Nasdaq composite index closed higher by 23.85 points, or 1.11%, to 2,171.20.

The crude prices made some recovery on Monday after suffering consecutive declines. The weakness in dollar against euro was well supported by the news of stronger US manufacturing sector and a report of increase in consumer spending in January that led to the rise in crude prices. Benchmark crude for March delivery rose $1.54, or 2.11 percent, to settle at $74.43 a barrel on the New York Mercantile Exchange. In London, March Brent crude rose $1.65 to settle at $73.11 a barrel, trading from $71.13 to $73.65.

The Indian rupee closed lower on Monday paring all its gain garnered in previous trading. The domestic currency made a weak start as the regional stock markets were trading lower setting stage for lower local equity markets. The rupee was also under pressure as the foreign fund has been showing outflow trend for the last couple of days. The rupee pared some of its early losses after the Euro stabilized overseas against dollar and the local stock markets showed sign of recovery. Though, the choppiness in the markets prevented the currency to post gains. Finally the rupee closed at 46.37/38, 21 paise weaker compared to its Friday's close of 46.16/17.

The FII on Monday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 3940.00 crore against gross sell of Rs 3742.60 crore, while in the debt segment the gross purchase was of Rs 624.70 crore with gross sales of Rs 315.80 crore.

The US markets closed higher on Monday after a slew of declines. The rise in manufacturing activities and governments report that personal income increased more than expected in December gave the much needed confidence to the markets. The Asian markets too are witnessing good going and all the major indices are trading higher by more than 1%. Back home the domestic markets after struggling hard made a flat close in previous session but the sign since last hours of trade was indicating for a recovery and with the support of global cues and domestic triggers, the markets are likely to make some recovery today. The HSBC-Markit Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 57.6 in January from 55.6 in December.

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                          Nifty Top volumes

• Unitech has reported posted a 29.37% increase in its consolidated net profit for the December quarter to Rs 176.01 crore.
• Suzlon Energy has reported Rs 14.1 crore of consolidated net profit for the October-December period compared with a net loss of Rs 64.87 crore a year earlier.
• Production of hot metal in Bhilai Steel Plant of Steel Authority of India has been hit by a fire in the unit.
• Ashok Leyland posted a surge in the third quarter ended December 31, 2009, with a 450% jump in net profit at Rs 104.6 crore against Rs 18.9 crore in the same period last year.
• Maruti Suzuki India's sales increased by 33.25% for January 2010 to 95,649 vehicles as compared to 71,779 vehicles in January 2009.

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