Market opened with a gap-up and gained momentum as the session progressed and the indices managed to close above psychological resistance levels. However, analysts expect the upmove to be capped at 5130-5160 levels on the Nifty.
“Market recovered to 5100 and overshot it too. However, the upside is limited to 5130-5160. As far as taking new short positions, one should wait for market to show some weakness below 5100 again. We may see a fall towards 4950 in next 2-3 days again,” said Sanjeev Agarwal, managing director, www.dynamixresearch.com.
National Stock Exchange’s Nifty ended at 5110.50, up 90.65 points or 1.81 per cent. The index touched intraday high of 5125.70 and low of 5020.15.
Bombay Stock Exchange’s Sensex closed at 17022.33, up 280.49 points or 1.68 per cent. The index touched a high of 17072.63 and low of 16786.28 in today’s trade.
BSE Midcap Index ended 1.10 per cent higher and BSE Smallcap Index closed up 1.15 per cent.
Amongst the sectoral indices, BSE Bankex gained 1.99 per cent, BSE Oil&gas Index moved 1.71 per cent higher and BSE IT Index advanced 1.69 per cent.
Reliance Communications gained 6.37 per cent on reports the Anil Dhirubhai Ambani Group is ready to sell a strategic stake in RComm as the company seeks to infuse fresh equity to fund its foray into third-generation telephony and wireless broadband access. The company is considering two options: merger with South Africa’s MTN or infusion of fresh equity from a strategic foreign investor.
Tata Motors advanced 3.06 per cent after the company reported rise in sales and as commercial production of Nano began in Sanand on Wednesday.
ONGC, which closed 2.40 per cent higher, recently got a booster in the form of revision in the 48.5 mmscmd APM gas that it sells, which was more than doubled to $4.2 per unit from $1.9 earlier. This is set to add nearly Rs 4,000 crore annually to the company’s bottomline in future. The stock also moved up ahead of EGoM’s meet on implementation of Kiri Parikh’s recommendation on deregulation of oil prices.
The other top Sensex gainers were HDFC Bank (2.76%), Sterlite Industries (2.51%) and HUL (4.02%).
There were no index losers.
Market breadth was positive on the BSE with 1,905 advances against 931 declines.
Meanwhile, the European markets were in the green and US stocks are also expected to open higher. At 4:30 pm IST, Dow Jones futures was up 0.35 per cent, S&P 500 gained 0.36 per cent and Nasdaq moved 0.23 per cent higher.