Upmove continues after a weak opening

01 Aug 2008 | 18:14

Upmove continues after a weak opening Markets opened significantly in the negative on Friday on the back of weak global cues. However, they recovered the entire losses and ended the day with substantial gains. The rally gathered steam in late trade after United Nations nuclear watchdog chief Mohamed ElBaradei today said a basic inspection plan for India met all safeguards standards. Members of IAEA's board of governors will be voting on the India-specific nuclear safeguard agreement, a key step in operationalisation of Indo-US nuclear deal. While the Sensex closed up 300.94 points or 2.10% at 14,656.69, the Nifty gained 80.6 points or 1.86% at 4413.55. The broad market indices also ended higher but to a lesser extent as the BSE Midcap and Smallcap index gained 1.35% and 0.97% respectively. Market breath was positive, as A/D ratio was about 1.4:1 on the BSE. NSE cash turnover was Rs.15,705 cr. versus Rs. 15387cr. on Thursday. Barring the BSE Auto and FMCG, all the BSE Sectoral indices ended in the green. The BSE Capital Goods, Power, PSU, Oil & Gas and Bankex gained more than 3% each. Gainers from the BSE-30 were Jaiprakash Associates, SBI, HDFC, Rel Infra and BHEL. The losers from the Sensex pack included Rel Comm, Tata Power, Maruti Suzuki, HUL and ACC. The main indices have now closed with gains for three consecutive sessions. The market breadth too has improved which augurs well for the uptrend to continue. Immediate upside targets for the Nifty are now at 4500. We continue with our selective buying approach with a short term perspective.