Markets witness a strong rally after five sessions of weakness The Indian markets closed on a strong note after five consecutive sessions of losses.

14 Jan 2009 | 18:43
Markets witness a strong rally after five sessions of weakness The Indian markets closed on a strong note after five consecutive sessions of losses.

Markets witness a strong rally after five sessions of weakness The Indian markets closed on a strong note after five consecutive sessions of losses. Both the Sensex and the Nifty closed above the psychologically crucial levels of 9,300 and 2,800. The rally came on the back of positive Asian cues.

While the Sensex closed 299.13pts or 3.3% higher at 9,370.49, the Nifty gained 90.35pts or 3.29% to close at 2835.3. The broad market indices under performed as the BSE Midcap and Small Cap indices gained only 1.9% and 1.26% respectively. Market breadth was positive as A/D ratio was 1.43:1 on the BSE. NSE cash turnover was lower at Rs.8,277crs. Vs. Rs.9,450crs. on Tuesday.

All the sectoral indices ended higher. The BSE oil and gas index was the top gainer followed by the BSE IT, Realty and Metal indices. The top gainers from the BSE-30 were RCom, Rel Infra, RIL, Infosys and M&M. The top losers were Grasim, Sun Pharma, HDFC Bank and HUL.

Though the markets have bounced back sharply, the short term trend continues to remain down. We therefore believe the current rally could be short lived. Possible upsides for the Nifty are 2850-2900. Traders entering into long positions must ensure that they exit their positions before the markets resume their downtrend.