Markets make sharp U-turn as realty, IT zoom; Nifty ends at 4550

09 June 2009

The benchmark indices took a sharp 'U' turn today. The markets erased all of their Monday's losses. The Sensex and the Nifty closed the session above 15,000 and 4,500 respectively.

There was a strong build-up in stocks after two days of unwinding. Most beaten down sectors like banking, realty, infrastructure (capital goods) and metal showed steep rally. Technology stocks continued their strong run-up for the second consecutive day.

The 30-share BSE Sensex ended 461.08 points or 3.14% higher at 15,127 and the 50-share NSE Nifty settled at 4550.95, up 2.73% or 121.05 points. All the sectoral indices closed in the green. Only five out of 50 stocks were under pressure.

The broader indices also followed the same trend; the BSE Midcap Index rose 3.15% or 160.87 points, to 5,275.72 and the Smallcap Index gained 101.73 points or 1.67% at 6,185.61. Advance-Decline ratio ended at 7:5 versus 1:11 on Monday.

Rajat K Bose of rajatkbose.com said, ''The target for the Nifty would be 4,585 to about 4,615 and 4,600 to 4,650 continues to be the supply zone. But this time I have a feeling that with this kind of momentum shaping up maybe 4,650-4,670 kind of resistance zone would be crossed and the market can move up even further. The 13-day simple moving average supported this rally and it came very close today to about 4,385 and then bounced back.''

Satyam shot up 10% and Tech Mahindra surged 25.5% post Satyam released its numbers.