Feb 19, 2009

Pullback rally continues

28 Jan 2009 | 17:05
Pullback rally continues

Markets continued to move up and closed with healthy gains for the second consecutive day on the back of short covering ahead of Jan series expiry. Positive global cues also lent support to the markets.

While the Sensex closed 253.39pts or 2.81% higher at 9,257.47, the Nifty gained 78.15pts or 2.82% to close at 2849.5. The broad market indices under performed as the BSE Midcap and Small Cap indices were up by 1.64% and 1.18% respectively. Market breadth was positive as A/D ratio was 1.37:1 on the BSE. NSE cash turnover was higher at Rs.9,764crs. Vs. Rs.8,297crs. on Tuesday.

All the sectoral indices ended higher. The top gainers were the BSE Realty, Metals, Bankex, Oil and Gas and Capital goods indices. The top gainers from the BSE-30 were Ranbaxy, ICICI Bank, DLF, LT, Tata Motors and M&M. The top losers were Maruti, Rcom and Sterlite.

With the pullback rally continuing, the Nifty has now closed just below the 2850 resistances. A move above these levels tomorrow could lead to the bulls gaining the upper hand and we could probably see the Nifty targeting the 2950-3000 levels. Tomorrow is also expiry day for the Jan derivative series and so markets are likely to be volatile.