Bulls were back all of a sudden on yesterday. The domestic markets rose after a report showing factory output in the US jumped twice as much as forecast, which boosted investor confidence. It indicated that global demand will be robust enough to drive corporate earnings growth.
Indian stock market opened on a flat note on Wednesday following the weak Asian markets. It traded in a narrow range till the mid-session. However, it started galloping in last one hour of trade, led by aggressive(?) buying in IT, Metal, FMCG, Financial, Oil & Gas and Health Care stocks and ended the session on a strong note. The Sensex gained more than 200 points for the first time since August 2, 2010.
Nifty closed at 5,479.15, up by 65 points (1.20%) over the previous day's closing of 5,414.15 after witnessing a day low of 5,416.25 and a high of 5,487.95. BSE Sensex closed at 18,257.12 up by 208.27 points (1.15%) over the previous day's closing of 18,048.85. It touched an intraday low of 18,067.67 and high of 18,286.00.
The market breadth was positive as advancing stocks outdid the declining ones. Of the 3,083 stocks traded on the BSE, 1,671 stocks declined whereas 1,272 stocks advanced and 140 shares remained unchanged.
FOR TODAY: On an intra-day basis Nifty has a support at 5440 and is likely to face a resistance near 5495. If it breaks 5440, it may further go down to 5415 and then 5400. However, if Nifty is able to sustain above 5495, intraday trend will be positive and the level of 5510-5530 would become the next target. FOR SAFE TRADE, BUY NIFTY ABOVE 5489 WITH STRICT STOPLOSS OF 5467 FOR TARGET OF 5508 OR SELL NIFTY BELOW 5467 WITH STOPLOSS OF 5484 FOR TARGET OF 5441.
DISCLAIMER: I HAVE SOME SHORT POSITION IN NIFTY FUTURE TAKEN YESTERDAY. MAYBE I'LL EXIT TODAY DEPENDING ON MARKET SITUATION.
