Positive institutional flows and active participation from local retail players helped the benchmark indices to post strong performance in today's trade. The Sensex successfully closed above the 11,000 mark while the Nifty ended above the 3450 mark. Huge buying in rate sensitives, infrastructure, pharma, cement, metal and select oil & gas stocks compelled the Nifty to cross the 200-Day Moving Average (DMA) of 3,437.
The technical level of the 200 DMA is a crucial one and holds the key to the next move in the bourses. What do the experts then think now that the Nifty is perched above the 200 DMA level?
Buy on dips
Technical Analyst Ashwani Gujral says that if Nifty manages to hold above the 3,480 level and consolidate for a period of one to two months, an uptrend would be seen in the markets. “The Nifty crossing the 200 DMA means there will be less selling pressure in the market,” he says. He advises to buy on every dip. He also advises to buy in midcap stocks. “The Nifty has support at 3,310 and resistance at 3,525 and 3,650.”
Nifty may move up
Technical Analyst Rajat K Bose says that as the Nifty has crossed both the 200-Day Simple Moving Average and Exponential Moving Average, the Nifty may head forward and has a target of 3,527 next. “If it crosses the first target, it may touch 3,585 and push towards next target, 3648.”
“The Nifty has very strong support at 3,393. Before that, it has supports at 3,452 and 3,420,” Bose says, adding that the strategy should be to hold on to long positions keeping a stop-loss below 3,445.
Beaten-down sectors will outperform
SP Tulsian says traders should trade with a positive bias. “The investors should remain invested in the long term. The trend is likely to continue positive in the upward bias,” Tulsian says. He expects a positive outcome from the elections. “The formation of a stable government with UPA minus Left government would have a positive impact on the markets. The target for Nifty is 4000-4300 on the upside,” he says, adding the beaten-down sectors like realty, infra, sugar, banking & capital goods will outperform in this rally. His top pick is the sugar sector.
Hold long positions
Technical Analyst Hitendra Vasudeo said that the Nifty has an important stop-loss of 3300. “However, if it goes below 3,300 on a closing basis, there may be some correction,” Vasudeo says, adding that the Nifty has resistance at 3,550. He advises to hold long positions and book partial profits near 3550 level.
Vijay Bhambwani, CEO of bsplindia.com said, "I am happy that the Nifty has now finally broken out above the 200 DMA. The Nifty maintains its head above this level for at least 2-3 trading sessions and the short squeeze itself will drive the market to higher to maybe 3,550-3,600 on the Nifty spot."
The 30-share BSE Sensex has touched an intraday high of 11,337.75, before closing the day at 11,284.73, up 317.51 points or 2.9%. The 50-share NSE Nifty shut shop at 3484.15, up 3% or 101.55 points, after hitting a high of 3497.55.
Huge trading interest was seen in the midcap and smallcap stocks. Even institutional flows turned positive today. Local retail players were active in the stock futures. Dealers expect broader market to be rangebound while midcap outperformance will continue.
Broader indices outperformed the benchmark indices smartly and witnessed rally for the 8th consecutive session. The BSE Midcap Index went up 136.97 points or 3.95%, to settle at 3,601.89. The Small cap Index closed at 4,123.45, up 5.32% or 208.29 points. Both the indices surged nearly 25% and 29%, respectively in the last 8 sessions. These indices helped the market breadth throughout the session to stay strong. About 2360 shares advanced while 635 shares declined. Nearly 100 shares were unchanged.
After a long time, the markets crossed a turnover of Rs 1 lakh crore mark. Today's market turnover was the highest for non-expiry day since January 2008 and was the highest since September 25, 2008.
Total traded turnover stood at Rs 1,00,893.68 crore. This included Rs 20,976.05 crore from NSE cash segment, Rs 72,224.45 crore from NSE F&O and the balance Rs 7,693.18 crore from BSE cash segment.
Reliance Industries, BHEL, SBI, NTPC, Bharti Airtel, DLF, L&T, ICICI Bank, HDFC, Reliance Communication, SBI and Tata Motors were leading counters in today's trade. However, Infosys, TCS, ITC, HDFC Bank, Sterlite and Tata Power closed in red.
Infosys Technologies has announced its fourth quarter numbers. Its Q4 FY09 net profit dipped 1.7% at Rs 1,613 crore as against Rs 1,641 crore on quarter-on-quarter basis.
It reported a decline of 2.61% in revenues at Rs 5,635 crore as against Rs 5,786 crore QoQ, first time in 10 years.
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