Markets witness a runaway rally
Markets were in blast mode today. After opening with an upgap on the back of strong global cues, the main indices continued to move up and closed near the highs of the day. In the US, JP Morgan revised its bid for Bear Stearns from about $2 a share to $10 per share. This boosted investor confidence across the globe. While the Sensex was up 928.09 points or 6.07% at 16,217.49, the Nifty was up 267.65 points or 5.81% to close at 4877.50. It was the second biggest single day point gain for the Sensex. Broadmarket indices also participated in the rally as the BSE Midcap and Smallcap indices gained 6.36% and 4.81% respectively. The market breadth was healthy, as A/D ratio was 3.2:1 on the BSE. NSE cash turnover was Rs.14182.0crs. Vs. Rs.10804.74crs. yesterday.
All the sectoral indices gained. The BSE Realty, Bankex and Consumer Durables surged in excess of 8%. The BSE Healthcare and FMCG gained about 2% each. There were no losers in the BSE-30 pack. Stocks which gained in excess of 10% were Jaiprakash Associates, DLF, and Rel Energy. These were followed by Infosys, ICICI Bank, Wipro and HDFC.
The markets have closed above important psychological levels of 16,000 and 4,800 for the Sensex and Nifty respectively. Buying was witnessed in scrips across all sectors as evidenced by the healthy market breadth. Selling pressure could emerge at higher levels and one will have to wait and observe if the main indices make a higher bottom or a double bottom in the coming sessions. For now, traders can gradually buy in small quantities and buy aggressively once the markets make a higher bottom and confirm an uptrend.
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