Nifty rides on bullish global cues, should power ahead

Market overcomes a midday dip to close strong- the Nifty above its 200-day moving average at 5230, riding on bullish signals from global markets.

It was a good outcome today because at one point during the day, we got a dip to 5160. It appeared that the market was running into resistance at 5200, but that was overcome, thanks to some really powerful cues from the European market while we were closing trade.
Most of the European markets were up about 1.5% around our closing time, and that gave the market the impetus it needed to go and close above that 5200 level. So it is a firm closing above the 200-day moving average and it looks like flows are still quite strong. So the markets are powering ahead. Today the breadth was very good, in fact, volumes picked up towards the end and the midcaps and smallcaps did better than largecap companies.
The leaders of the rally, power stocks, did very well and metal stocks were up quite a bit. Largecap names like L&T, IDFC, JP Associates were on the winning side. HDFC slipped a bit after a large block deal in the morning. ICICI Bank soaked in some correction. Coal India was the one which closed weak because of uncertain price environment which has come up in the last couple of days.
Crompton Greaves from the capital goods space, engineering space started 3% lower because of the poor earnings yesterday, but on a management clarification and earnings call, we could see buying on that stock and finally, went up 6-7% by the time trade ended. So it was a good 10% kind of an intraday swing that we saw in Crompton Greaves.
Other prominent winners from the infrastructure space - IVRCL, Lanco, GVK and Punj Lloyd and Suzlon did well and names like Mahindra Satyam and Ashok Leyland before their numbers looked good. ITI and STC did well from the public sector basket, as did REC and PFC. Jet and Kingfisher from aviation also had good rallies.
On the weaker side, Titan did not post results that were too good, nor did PTC. IDBI Bank was lackluster as well. So some of these result reactions were not great, but otherwise, a very good broader market picture today. Momentum still continues and global cues still remain quite robust.