Markets bounce back

27 Jan 2009 | 18:32
Markets bounce back

Markets bounced back sharply after the fall seen last week. Domestic funds were buyers in today's trade while volumes were low at FII desk as Asian markets were shut. The upmove was also driven by short covering in select large cap stocks ahead of expiry. RBI's credit policy announcement was clearly the non-event of the day, as the central bank kept all rates unchanged.

While the Sensex closed 329.73pts or 3.8% higher at 9,004.08, the Nifty gained 92.8pts or 3.46% to close at 2771.35. The broad market indices under performed as the BSE Midcap and Small Cap indices were up by 0.62% and 0.34% respectively. Market breadth was marginally positive as A/D ratio was 1.04:1 on the BSE. NSE cash turnover was lower at Rs.8,297crs. Vs. Rs.8,459 crs. on last Friday.

All the sectoral indices ended higher. The top gainers were the BSE Metals, Power, IT, Oil and Gas and Bankex. The top gainers from the BSE-30 were Sterlite, Rel infra, Rcom, RIL and Sun Pharma. The top losers were ONGC and L&T.

Though the main indices have bounced back smartly, the short term trend continues to remain down. The Nifty would need to cross the 2850 resistances for the bulls to regain control. We continue with our strategy of going slow on fresh longs and using any upsides to build shorts.