Nifty ends above 3250; auto, capital goods, metal surge

06 April 2009

The markets traded strong throughout the day and closed higher. The Sensex and the Nifty closed over their psychological 10500 and 3250 levels respectively. Technical Analyst, Ashwani Gujral feels that as long as the Nifty is able to sustain 3100–3150, the final target could be seen around the 3700 mark.

Except FMCG all the sectoral indices closed positive. Strong buying interest was seen in metal, capital goods, auto, realty and banks stocks.

On the global front, Asian markets closed higher. At 3.30 pm, European markets were trading with good gains. FTSE 100, CAC 40 and DAX were up over 1% each.

The Sensex closed up 186.04 points or 1.80% at 10534.87, and the Nifty was up 45.55 points or 1.42% at 3256.60.

The markets breadth was positive, about 2083 shares advanced, 887 shares declined, and 116 shares were unchanged.

Sandeep Bhatia of Kotak Institutional Equities, feels that the extent of bull run in the markets comes as a surprise. "The current market is exactly opposite of the October-November market. At that time, there was complete risk aversion and valuations completely fell off a cliff. Now, the risk aversion is coming off and risk appetite is increasing, which is why the market has gone up sharply in the last three weeks. He sees 10 % upside in the near-term.