Good pullback for market, but may be just technical: Udayan

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Good pullback for market, but may be just technical: Udayan

The market had a very good come back today, closing much near to the psychological 5000 mark at 4971 points. “It still looks like a major technical bounce aided by short covering, particularly because volumes were not great today,” says Udayan Mukherjee, managing editor, CNBC-TV18.

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Excerpts from What's Hot on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say Reliance BSE | NSE 30/05/12 Are Mutual Funds betting on Reliance? Other Stocks in this news Tata Consultancy Services | Infosys | Wipro | ICICI Bank | State Bank of India | Housing Development Finance Corporation | Hindalco Industries | Sterlite Industries (India) | Jaiprakash Associates | Tata Motors | DLF | IFCI | Housing Development and Infrastructure | Indiabulls Real Estate | Titan Industries | Coal India | Petronet LNG Ltd | Den Networks | Hathway Cable and Datacom | Hexaware Technologies | Shree Renuka Sugars | Yes Bank | Pipavav Defence and Offshore Engineering Company | GMR Infrastructure |

The market had a very good come back today, closing much near to the psychological 5000 mark at 4971 points. A very supportive global market and a strong Asia, buoyed by a strengthening European market too, pushed India trade up. "It still looks like a major technical bounce aided by short covering, particularly because volumes were not great today," says Udayan Mukherjee, managing editor, CNBC-TV18. Volumes came in at about Rs 1.8 lakh crore, much lower than even yesterday, and the breadth also faltered today because the midcap index was up only 1.3% compared with the Nifty's nearly 3%.

"True that the breadth and volumes were not great of such a spectacular session for the market, but there is no taking away from the ferocity of the comeback, aided by the most beaten down names in the market," says Mukherjee. Reliance jumped 5% today, all the way back to Rs 800, frontline IT stocks led by TCS , Infosys and Wipro were also seen trading strong.

Banks have had a good time today, with ICICI Bank , State Bank of India , HDFC all registering good price run and even the beaten down metal space led by Hindalco and Sterlite staged a smart comeback.

"Today was about ADAG because the group companies had their AGM, and chairman Anil Ambani said many bullish things about deleveraging their stressed balance sheet," Mukherjee says. That lifted sentiment in some of the companies of the group. Other stocks which went up today include JP Associates , Tata Motors and DLF , all that locked in 6-7% kind of returns. 

The rupee came down to about Rs 49 today. "It was at the brink of Rs 50 just a few days back," Mukherjee reminds. So that's had a bit of a pull back. Even Gold which had slipped last night to about USD 1530 has clawed back to about USD 1640 kind of levels in today's trades.

The midcaps did not look particularly convincing. There were rallies in names like IFCI , HDIL , Indiabulls Real Estate , Titan , Coal India and Petronet LNG that had come off early in the week. DEN Networks and Hathway from the cable space looked quite good and Hexaware from IT, Renuka from sugar, Yes Bank from the private sector banking space too ended well.

The only disappointment came from Pipavav because of negative news flow on their deal. "We saw that one come off a bit, and GMR , post the stake sale in GMR Energy also looked a bit sluggish today," Mukherjee sums the day's trade.