Nifty touches 5600; TCS, BHEL, ITC, HDFC Bank lead

The benchmark Nifty has touched the 5600-mark for the first time since June 6, supported by 40 stocks out of 50. Technology, power, metal, banking, FMCG and select auto companies' shares were leading gainers.

Technical Analyst, Anil Manghnani of Modern Shares and Stock Brokers said that he was quiet surprised that the Nifty crossed 5,480 that easily.

We witnessed a good buying from the FII and according to him, this rally seems to be different from those that we have had in the past. The past rallies have been more gradual because people have got caught on the long side quite a bit, he said. FIIs have net bought more than Rs 4,000 crore worth of equities in last four days.

"I think 5,570-5,600 has been the problem area for this market so, if it can cross that then maybe 5,650 also," he added.

The 30-share BSE Sensex was trading at 18,671, up 179 points and the 50-share NSE Nifty gained 52 points at 5,596. However, traders were using a strategy of sell on rallies.

Major largecaps like TCS, ITC, BHEL, HDFC Bank, NTPC, Tata Motors, Sterlite, HDFC, HUL, Tata Steel, Hindalco, M&M and Hero Honda were up 1-2%. Reliance Industries, SBI and Infosys gained over 0.5%.

However, selling continued in ONGC, Cairn, Bajaj Auto, Reliance Power, HCL Tech, L&T, Jaiprakash Associates and BPCL

Financial Tech, Orissa Minerals, Tata Coffee, GTL, SBI, ICICI Bank, Tata Motors, L&T and DLF were most active shares on exchanges.

Midcaps like EID Parry, CESC, Shree Renuka and Fresenius Kabi surged 5-6%. KS Oils shot up 15%.

However, Bajaj Holdings, KGN Industries, Jubilant Life, J&K Bank and Gujarat State Petronet lost 3-5%.

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Metals, banks, tech drive Nifty higher

Buying in metal, financial, technology, FMCG and power companies' shares were supporting the equity benchmarks to trade higher for sixth consecutive session today. The Nifty was trying hard to touch the 5600-mark but the sell-off in ONGC and L&T has capped the upside.

Ajay Srivastava, CEO, Dimensions Consulting feels that this is only a pure relief rally. "I think it is a pure demand and supply. It is emotionally underinvested market, which is playing the game today,