Great day for stock traders

CNBC-TV18's Head-Markets Research, Anuj Singhal - I have been saying this for a while. The bulls are having an upper hand and market has clearly broken out. But something was lacking in this rally: The cheer and joy of the momentum stocks burning the screen. We got the first signs on Tuesday. Now an overdose of this can be dangerous but about 5 crore shares build-up in Stock futures is a clear signal of traders coming back full time, if you look at the names involved here - IFCI, RNRL, Ispat, TTML, JP Hydro.

Now what this has done is that it’s made the May series already look a bit heavier than where the April series began. But then, you need to look at it in the right context. April was the lightest series in a year and in that sense, we are still not in a heavy market

And don’t forget the Nifty of course. What a pleasant surprise it was for the markets to close in the green amid weak global cues and a bad set of TCS numbers, which saw the tech stocks, take a tumble. In fact, now the Nifty has got a decent cushion above 5000 and the options data suggests that traders now believe the level is conquered decisively at least for the current series

In individual stocks, watch our for Peninsula Land. There might be something cooking here with the stock moving up 10% in 2 days with Open Interest more than doubling. Also, Hindustan Oil Exploartion deserves mention. This has been the real leader among the oil & gas pack and technically looks the strongest stock.

Of course, we will watch our for the momentum pack to see whether it was just a one day wonder or serious momentum is coming back?

DISCLAIMER: The author is not allowed to trade in equity markets including Futures and Options. His only exposure to capital markets is via shares of TV18 and Network18 granted to him as ESOPs by the company and investments in some long-term mutual funds.