Market recover on FM comments, positive global cues
MUMBAI: Bulls staged a strong comeback on Monday as sentiments turned positive on assuring comments from Finance Minister P Chidambaram and also as global markets opened higher after steps by European markets to curb on-going financial crisis.
After the worst fall last week, markets opened with a gap-up in line with other Asian markets on reports that European countries were collectively infusing funds to ease credit in banking system. In another development, UK government said it would inject $63 billion into three banks to keep liquidity crunch at bay.
Back home, Finance Minister Chidambaram’s statement that Indian economy was growing at a robust pace and assurances that the Reserve Bank of India will infuse more funds to fight credit squeeze boosted sentiments.
Investors began taking long positions in frontline stocks which were battered heavily. Efforts by management of ICICI Bank to clear air on their financial positions helped as the scrip shot up recovering losses in previous sessions.
“In early part of trade there was build-up of long positions and later as the market gained momentum, traders began to cover short positions, taking indices to higher levels,” said technical analyst, Birendra Kumar Singh of Religare Securities.
Bombay Stock Exchange’s Sensex closed at 11,309.09, up 7.42 per cent or 781.24 points. The index touched an intra-day high of 11,361.32 and low of 10,817.68.
National Stock Exchange’s Nifty ended at 3490.70, up 210.75 points or 6.43 per cent. It touched a high of 3510.20 and low of 3272.90 during the day.
BSE Midcap Index was up 4.40 per cent and BSE Smallcap Index gained 3.85 per cent.
“In this bear phase, Sensex has seen four pull-back rallies from its channel supports. Friday’s low of 10,239 was the fourth channel support. On earlier occassion, Sensex rallied some 3,000 points and now we may see 1,500-3,000 points rally. Targets for the Sensex will be 11,700, 12,000 and 12,500, provided it manages to close above 11,501. But if it falls below Friday’s low then we may see a continuation of negative trend and next target would be 9,898,” said Birendra Kumar.
Reliance Communications (19.92%), Reliance Infrastructure (17.13%), ICICI Bank (16.71%), Sterlite Industries (15.99%) and HDFC Bank (12.58%) were the major Sensex gainers.
Ranbaxy Laboratories (-5.88%) and ONGC (-1.02%) were the only losers.
Market breadth remained extremely positive through the day. On BSE, there were 1687 advances against 926 declines.
Source : Economic Times
MUMBAI: Bulls staged a strong comeback on Monday as sentiments turned positive on assuring comments from Finance Minister P Chidambaram and also as global markets opened higher after steps by European markets to curb on-going financial crisis.
After the worst fall last week, markets opened with a gap-up in line with other Asian markets on reports that European countries were collectively infusing funds to ease credit in banking system. In another development, UK government said it would inject $63 billion into three banks to keep liquidity crunch at bay.
Back home, Finance Minister Chidambaram’s statement that Indian economy was growing at a robust pace and assurances that the Reserve Bank of India will infuse more funds to fight credit squeeze boosted sentiments.
Investors began taking long positions in frontline stocks which were battered heavily. Efforts by management of ICICI Bank to clear air on their financial positions helped as the scrip shot up recovering losses in previous sessions.
“In early part of trade there was build-up of long positions and later as the market gained momentum, traders began to cover short positions, taking indices to higher levels,” said technical analyst, Birendra Kumar Singh of Religare Securities.
Bombay Stock Exchange’s Sensex closed at 11,309.09, up 7.42 per cent or 781.24 points. The index touched an intra-day high of 11,361.32 and low of 10,817.68.
National Stock Exchange’s Nifty ended at 3490.70, up 210.75 points or 6.43 per cent. It touched a high of 3510.20 and low of 3272.90 during the day.
BSE Midcap Index was up 4.40 per cent and BSE Smallcap Index gained 3.85 per cent.
“In this bear phase, Sensex has seen four pull-back rallies from its channel supports. Friday’s low of 10,239 was the fourth channel support. On earlier occassion, Sensex rallied some 3,000 points and now we may see 1,500-3,000 points rally. Targets for the Sensex will be 11,700, 12,000 and 12,500, provided it manages to close above 11,501. But if it falls below Friday’s low then we may see a continuation of negative trend and next target would be 9,898,” said Birendra Kumar.
Reliance Communications (19.92%), Reliance Infrastructure (17.13%), ICICI Bank (16.71%), Sterlite Industries (15.99%) and HDFC Bank (12.58%) were the major Sensex gainers.
Ranbaxy Laboratories (-5.88%) and ONGC (-1.02%) were the only losers.
Market breadth remained extremely positive through the day. On BSE, there were 1687 advances against 926 declines.
Source : Economic Times