Sensex ends up 157 pts on global cues; tech outperforms
23 Aug 2011
Indian equities continued their uptrend for the second consecutive session on Tuesday with the Sensex rising about 350 points in two days. Positive global cues led the rally in today's trade. However, the market was lacklustre in the morning trade amid volatility.
According to Devangshu Datta, Consulting Editor at Outlook, it is almost certainly a technical pull back in today's and yesterday's trade including a fair amount of FII short covering or hedge fund short covering.
The 30-share BSE Sensex gained 156.77 points, to close at 16,498.47 and the 50-share NSE Nifty rose 50.1 points, to settle at 4,948.9.
Experts, however, warn that there may be selling pressure going ahead in short term.
"If you are looking at a two years time frame, you are looking at the market going back to about 6300-6400 in two years time frame. But if you are looking at the next six months I think the market could fall at least another 400-500 points - that would be the next level of support if this breaks. You have got sentiment turned fairly bearish," Datta said.
However Anand Tandon, CEO, JRG Securities feels that from now on each one of these lower bottoms was actually an opportunity for buying.