Nifty may continue to inch up to 3400-3500

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Nifty may continue to inch up to 3400-3500

It was a day of positive consolidation at the markets. Though markets witnessed a small bout of profit booking mid-day, the indices managed to hold on. The markets have still managed to hold a positive groove and continue to inch higher towards the 200-day moving average of 3,400-3,500.

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Excerpts from Markets Today on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say Essar Oil BSE | NSE 30/05/12 Are Mutual Funds betting on Essar Oil? Other Stocks in this news Bongaigaon Refineries and Petrochemicals | Mangalore Refinery and Petrochemicals | Rolta India | Bajaj Hindusthan | Nagarjuna Fertilisers and Chemicals | Mahindra Satyam |

It was a day of positive consolidation at the markets. Though markets witnessed a small bout of profit booking mid-day, the indices managed to hold on. The entire metals pack and capital goods stocks went home with good gains. Volumes were not too bad as well. The Sensex closed up 186.04 points, or 1.8%, at 10534.87, while the Nifty was up 45.55 points, or 1.42%, at 3256.6.

The markets have still managed to hold a positive groove and continue to inch higher towards the 200-day moving average of 3,400-3,500.

Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also see the accompanying video.

It was a day of positive consolidation for the stock market today. The Sensex was up 200 points at 10,500. The Nifty corrected a bit from the day's highs but still managed to close above 3,250. It was a fantastic run for the midcaps. The Nifty Junior closed up 3%. The breadth was strong. Refining stocks like Essar Oil , Bongaigaon , and MRPL surged in trade.

There is a long list of winners today in the largecaps. But generally metals and infrastructure names stole the limelight. However, FMCG and cement counters looked somewhat weak today. Trading stocks were looking good as well. By the close, counters like Rolta , Bajaj Hindusthan , and Nagarjuna Fertilisers all closed up with double-digit percentage gains.

Satyam Computer had a very strong day and ended the day about 12-13% higher as the bidding process enters its last lap.

No complaint from Monday's trading session?

We ended the day at 3,250. So, the market continues to edge higher. I don't think a 2% uptick can be called a bad day by any stretch especially in the context of what we had with global markets. Europe was up about 1% in the afternoon while we were closing. We did pretty much what other global markets did today, especially in the context of how strong the rally has been in the last couple of weeks. Despite that one 5% down day, the fact is that we are still doing those intraday consolidations.

Corrections nowadays are intraday cool-offs rather than massive sell-offs for many days. Today was one of those. We started at 3,300 Nifty, saw some profit taking that took the market back down to 3,230 thereabouts, managed to come back and close at 3,260. It was on very good breadth of 4:1 with very good volumes of nearly Rs 70,000 crore. So, it still seems that the momentum is favouring the bulls globally and locally. There is nothing to be perturbed about today's mild profit taking at the top of the day. I think it is more important that we still managed to hold a positive groove and continue to inch higher towards the 200-day moving average of 3,400-3,500.

Also see: Nifty ends above 3250; auto, capital goods, metal surge