Dalal Street responded to the massive global rally with a big gap-up opening. Strong gains in beaten down sectors like banking and metals helped markets maintain their momentum.
Dalal Street responded to the massive global rally with a big gap-up opening. Strong gains in beaten down sectors like banking and metals helped markets maintain their momentum. The Sensex, which shot up nearly 600 points in intraday trade, ended up 359.99 points at 16,483.45. The Nifty rose 104.80 points, to close at 4,936.85, after hitting a high of 5,010 during the day.
Sudarshan Sukhani of S2analytics.com cautions that inspite of all the good things 5000 is still a barrier. "Let the Nifty close above it for a day, preferably for two days and clearly long positions would be justified. At this point, we have simply extended the trading range," he explains.
Agreeing that the month has started well, PN Vijay, Portfolio Manager points out that we need more data points for the market to sustain the rally. "We are still down 20% from the beginning of the year and we have hardly gone up 4% in the current global rally so we have just taken baby steps. We need to build on that," Vijay adds.
Shashank Khade of Kotak Securities also feels that any stability in the bond markets will clearly signal risk appetite to come back into equities. According to Khade, risk appetite will return to the local markets. Khade elaborates, "I think our economy has slowed down by design and not by default. Possibly we are ahead of one of the weakest quarters. I think we will tide over this issue and clearly the Indian market can start to look at a better upside from here."