Nifty inches towards 5900; banks, auto, capital goods zoom

The benchmark Sensex gained more than 300 points at 14:20 hours IST, mainly aided by financial, technology, infrastructure, auto and oil & gas companies' shares. The Nifty was inching up towards the 5900 mark.

Jai Bala, chief market technician at Cashthechaos.com thinks that the Nifty may touch 5944 level and may begin trending lower once it finishes its uptrend completely. The 50-share NSE Nifty was trading at 5,889, up 104 points and the 30-share BSE Sensex gained 356 points at 19618. F&O action - Nifty 6100 call added 6.5 lakh shares in open interest. There has been huge put writing at Nifty 5800 Put, which means strong support - it added 19 lakh shares in open interest. The rally was partly due to falling crude oil prices and positive global cues. European markets like CAC, DAX and FTSE were trading 0.5% higher. Asian markets too ended with 0.5-1.5% gain. London Brent crude was trading at USD 121 a barrel and NYMEX crude was around USD 106 a barrel. Largecaps Jaiprakash Associates, Hero Honda, HUL, HDFC, L&T and Siemens were the top gainers, with rising 3-6%. Heavyweights like TCS, ICICI Bank, ITC, L&T, SBI, NTPC, HDFC Bank and Wipro rallied 1.5-3.5%. Reliance Industries and Infosys rose 1% each. However, Sun Pharma, Tata Power, Cairn India and Sterlite Industries were only losers, which were marginally in red. M&M Financial, GRUH Finance (post results), LIC Housing Finance, SBI, L&T, ICICI Bank, Reliance Industries and Infosys were most active shares on exchanges. In midcap space, Sun Pharma Advanced shot up 18% after a JV deal between Sun Pharma and Merck. Sterlite Tech, Alok Industries (promoters upped stake), SpiceJet (fall in crude oil prices) and Educomp Solutions gained 5-9%. However, Kwality Dairy, Essar Shipping, KGN Industries, Bajaj Electrical and Core Projects fell 3-5%. In smallcap space, CCL Products, Hatsun Agro, National Perox, Hawkins Cooker and Camlin gained 10-19%. However, Geojit BNP, Acropetal Tech, Sahara One, Vaarad Ventures and Dion Global slipped 4-7%. Breadth too was quite strong. About 1875 shares advanced as against 979 shares declined on the Bombay Stock Exchange. _PAGEBREAK_ Nifty trades higher; All sectoral indices in green The Nifty was trading higher at around 5850 levels. All sectoral indices were trading in green. Strong buying was seen in capital goods, auto, IT, bankex, FMCG and power stocks. Reliance, Infosys, TCS, ICICI Bank, ITC and HDFC were positive contributors to the bourses. At 13.12 pm, the Sensex was up 246.37 points or 1.28% at 19508.91, and the Nifty was up 73.95 points or 1.28% at 5859.65. Markets breadth was positive, about 1825 shares have advanced, 964 shares declined, and 841 shares are unchanged.  Mark Mobius of Templeton Emerging Markets Group said that Indian market is showing signs of investors returning to India once again. He is optimistic that India may see new highs by year-end. Mobius warns that lack of government action may pose a big risk to India.