An excellent day of gains was witnessed by our market today, wherein after a weak opening, indices made a stellar recovery in the last hour of trade, which eventually led the indices to close on spectacular gains.
• Negative cues in the form of cautions generate out of more than casual rush for taking money from ECB, norms for higher capital requirement mulled by Federal Reserve and adverse movement of Currencies, spearheaded a selling drive across the market.
• Nifty and Sensex rose significantly after a poor start and regained their pivotal levels of 4700 and 15800.
• On account of weak earnings estimates announced by Oracle, major IT & Tech stocks were down. Chinese manufacturing activity continued to contract in December 2011, this led major Metal stocks to fall.
• Weakness in peer Asian indices too aggravated selling in our market. Positive US premarket indices’ future and firm opening of European indices, infused recovery signals in our market.
• The Sensex closed at 15813, up 128 points from its previous close, and the Nifty shut shop at 4734, up 41 points.
• The market breadth was positive with advances at 793 against declines of 494 on the NSE.
Level wise, closing above the threshold 4700 levels may depict returning strength of the bulls in the forthcoming sessions. Broader market witnessed firm sentiments, segments, like Large caps, small cap, midcap were under bulls support. Owing to this, bulls outnumbered the bears with significant margin. Due to buying Nifty recover significantly and closed above 9 day’s SMA placed at 4701 but, continued to close below its vital 14, 50 & 100 day’s SMA placed at 4805, 4983 & 5025. Though, VIX, the barometer of uncertainty, corrected sharply and closed at 26+, yet it indicates a more than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 44.08 levels and MACD closed below the signal line.
NIFTY LEVEL
R1- 4770
R2-4815
S1-4710
S2-4675
