MUMBAI: Benchmark indices extended their winning streak on Wednesday to close at new 52-week highs. Sentiments turned bullish ahead of second
quarter results and as traders covered short positions after benchmarks crossed psychological resistance levels.
“There was euphoria in the market as we crossed psychological levels. It was evident with rise in textiles, fertilisers midcap auto and banking stocks.
In short to medium term Nifty can move upto 5150-5200 on the higher side and witness profit booking. Though the overall trend looks bullish investors are advised to buy on declines only. Oscillators position and price pattern indicate that investors should be cautious at 5150-5200.
That doesn’t mean once can take contrarion call at 5200 as the world markets are supportive. We have to look at any bearish formation on the daily charts.
In the next few days 4900 on Nifty will act as a strong support and if this support is broken then Nifty will correct sharply and may fall to 4750,” said Shrikant S Chouhan, senior vice president, technical research, Kotak Securities.
Bombay Stock Exchange’s Sensex closed at 17126.84, up 273.93 points or 1.63 per cent. The index hit a high of 17142.52 and low of 16868.46. The index closed above psychological mark for the first time since May 21, 2008.
National Stock Exchange’s Nifty ended at 5083.95, up 77.1 points or 1.54 per cent. The index touched an intra-day high of 5087.60 and low of 5004.35.
BSE Midcap Index was up 0.95 per cent and BSE Smallcap Index gained 0.94 per cent.
Amongst the sectoral indices, BSE Bankex gained 3.69 per cent, BSE Auto Index moved up 2.13 per cent and BSE Capital Goods Index advanced 1.74 per cent. BSE FMCG Index slipped 0.42 per cent.
State Bank of India (5.01%), ICICI Bank (4.63%), Maruti Suzuki (3.70%), Mahindra & Mahindra (3.46%) and Sterlite Industries (3.46%) were amongst the Sensex gainers.
ONGC (-1.25%), ITC (-1.07%), Grasim industries (-0.73%) and Bharti Airtel (-0.07%) were amongst the losers. Market breadth was positive on the BSE with 1598 advances and 1183 declines.
European markets were in positive territory led by commodities and financials and the US markets were also headed for a positive start. At 5:45 pm IST, Dow Jones futures was up 0.35 per cent, S&P 500 gained 0.43 per cent and Nasdaq 100 moved 0.38 per cent higher.
Source: India TimesNo tags for this post.