Nifty snaps 6-day losing streak, ends above 4700; RIL up 5 per cent

The Nifty snapped a six-day losing streak and recouped all of Tuesday's losses on the back of institutional buying in heavyweights, short covering and positive global cues. The Sensex rallied over 500 points while the Nifty jumped nearly 150 points to close above the 4,700 mark. However, volumes remained below the Rs 1 lakh crore mark.

Buying was seen in the same stocks, which were beaten down badly yesterday. Heavyweight Reliance Industries surged 5.5%. All the sectoral indices ended in the green. The BSE Realty Index outperformed other indices, jumped over 10%. Metal Index rose 5.5%. IT, Oil & Gas, Bank, Auto, Healthcare, FMCG and Power indices gained 2-4%.

Global cues remained positive throughout the session. At the time of writing this report, European markets like CAC and DAX rose 1.4% each, and FTSE gained 0.7%. US index futures went up 0.3-0.7%. Asian markets closed higher; Hang Seng, Kospi, Taiwan Weighted and Jakarta went up 1.6-2%. Straits Times gained over 1%. Shanghai and Nikkei were up over 0.4%. The US markets also recovered and closed mixed in Tuesday's trade.

The 30-share BSE Sensex closed at 15,912.13, up 507.19 points or 3.29% and the Nifty was at 4710.80, up 146.90 points or 3.22% over previous close. The BSE Midcap Index outperformed the benchmark indices, jumped 3.5% and the Smallcap Index rose over 2%.

Big short covering was seen in the Nifty and high beta stocks. Big build-up was seen at Nifty 4600 Put. The Nifty November futures closed marginally in the premium.

However, Jagdish Malkani of Taib India said there was a risk of sharper cut that would take below 4,500 on the Nifty. "After such a vicious turn this is a welcome thing but in general there are enough storm clouds on the horizon. And now who knows what could be the next trigger, whether it's the partial unwinding of the dollar carry trade or it's our own domestic factors etc but I see some more pain ahead."