Markets witness a strong rally

06 Feb 2009 | 19:04


The bulls were in control today as markets witnessed a smart rally after three days of lacklustre trading. This rally may be ahead of the second stimulus package to be announced in the US by Tim Geithner (new US Treasury Secretary) that also resulted in Asian markets ending on a strong note.

While the Sensex closed 209.98pts or 2.31% higher at 9,300.86, the Nifty gained 63.05pts or 2.27% to close at 2843.1. The broad market indices too ended higher as the BSE Midcap and Small Cap indices were up by 1.43% and 1.05% respectively. Market breadth was positive as A/D ratio was 1.45:1 on the BSE.

All the sectoral indices ended higher. The top gainers were the BSE Oil and Gas, Metals, Consumer Durables and Bankex indices. The top gainers from the BSE-30 were Grasim, Ranbaxy, Tata motors, Reliance, ICICI Bank and TCS. The top losers were HUL and DLF.

Though the markets have closed with healthy gains today, the Nifty continues to remain within the 2700-2850 range. Narrow ranges are usually followed by a big move. One can therefore expect a big move once the Nifty breaks out of the 2750-2850 range. We recommend trading in the direction of the break out.