Pullback raises hopes of Nifty reclaiming 5900 soon

It was a powerful pullback rally. It looked a bit tricky after the IIP numbers came in. The Nifty plummeted to 5720, raising fears of a breach of 5700 which did not happen. Once again, we defended 5700 and pulled back to close above 5850. So intraday, point to point in the matter of about 3 hours, Nifty rallied 130 points which is not insignificant. Lots of largecap names participated and the volumes were good at Rs 2 lakh crore today. So today, it was not a volumeless recovery. It appeared like a solid pullback rally and raised hopes of getting 5900 to 6000 over the next day or two, if Infosys does not disappoint tomorrow.

We have had some reasonable market breadth today. From the largecap space, the big winner was Suzlon due to the JP Morgan upgrade on that stock. Other notable winners include TCS from technology was ahead of the Infosys numbers which are expected to be good tomorrow. Tata Motors from Auto, Cairn and Sterlite from the commodities basket and some other bank names like ICICI Bank, Punjab National Bank and Axis Bank, did well. Nifty was up by nearly 2.5% propelled by the banking sector which was a good come back. The IIP numbers were a bit disappointing. Some of the infrastructure names like L&T and Hindustan Construction remained subdued. HUL was flattish and Bajaj Auto did not have a great day at the end of it. The market saw more winners than losers from the largecap space. We had a lot of winners in the midcap space with names like Renuka from Sugar, Praj from Infra and Alok Industries. Unitech bounced back after yesterday's big fall. A couple of banks like IndusInd Bank and UCO Bank did well. HOEC also caught your eye today. The infra names like IVRCL, HCC and Crompton Greaves were subdued because of the IIP number. There was a strong rebound backed by volumes. This was always on the cards, after the heavily oversold nature of the market over the last few days.