Global cues push up Sensex 333 pts
Mumbai, Feb. 3: The domestic markets were on a roll on Wednesday following a global rally, helping Sensex recover Tuesday’s losses by surging 333 points.
"It’s typical short covering after the big fall on Tuesday" said Mr Jagannadham Thunuguntla of SMC Capital.
However, there is still an element of uncertainty and nervousness in the market because of the global factors.
The markets, which had opened short of 200 points up, continued to surge throughout the day with the Sensex gaining its highest points since December 23 at 16,496 up 332.61 points.
It hit a high of 16,552.99 and a low of 16,210. The Nifty closed up 101.75 points at 4931.85. It saw a high that was not far from the 5,000 mark at 4,949 and a low of 4,831.
When the markets opened high on strong global cues and continued to surge the bears who had gone short heavily on Tuesday ran for cover.
The Nifty futures lost 7 per cent from the open interest on Tuesday. There was also FII buying on Wednesday, according to Mr Pradip Hotchandani of Anagram Securities.
This was obvious as the rupee appreciated by half a per cent on Weednesday, he said. Besides the markets are in oversold positions in the short term.
The next resistance level for the Sensex could be at 17,000 and for the Nifty at 5,100 if this upward trendcontinues in the long run.
The market breadth was strong with 907 stocks closing in the green and 359 in the red. With the stocks down 10 per cent in the last few trading sessions bargain mining can continue.
Age Correspondent
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