Sensex gains 59 pts, closes at 14,397
The Nifty scales a new peak during intra-day trade, but slips to 4,256.50 at closing, reports Vyas Mohan.business Updated: May 29, 2007 00:38 IST
The 50-share index of the National Stock Exchange, the S&P CNX Nifty scaled a new peak at 4295.60 points in early trade on Monday as shares of banks rallied alongside other index heavyweights.
However, the index eased off towards the end of the session to settle with marginal gains at 4256.55 points, up 0.20 per cent from its previous close. The 30-share index of the Bombay Stock Exchange closed the day at 14,397.89 points, up 59 points or 0.41 per cent. The index is now just about 325 points away from the all-time high recorded intra-day on February 9, 2007.
Though the indices showed signs of fatigue towards the end of the trading session, market experts see good strength in the market.
“The overall trend in the market is bullish. We have not seen any short position built up on the Nifty and that is a positive sign. Further, the rollovers have been quite normal at around 33 per cent in stock futures and 30 per cent on the Nifty futures,” says Zeal Mehta, Chief Derivatives Analyst of Emkay Shares.
Positions taken in the derivatives market give a fair reflection of investor expectations for the future. Since not many short positions (equivalent to a sell in the cash market) have been taken in the derivatives market, it means investors do not expect a fall in the markets.
Chartists, who usually voice caution when the indices close near the lower end of the day’s trading band, remain bullish this time around. The reason – the Nifty has held above its all-time high in four out of last five trading sessions.
“The markets look good at these levels. The Nifty has held strong above its all-time high closing for the whole of last week except one day. I expect that in a few days, the Sensex will also cross its all-time high. After that, the period it holds above the all-time high will determine the level of bullishness in the market. A correction of say 200-300 points does not matter at all in such kind of a market,” says Prem Daga, an independent technical analyst.
HDFC Bank topped the gainers’ pack in the Sensex, surging 5.23 per cent to close at Rs 1,125.40. It was followed by Larsen and Tourbo (up 2.65 per cent at Rs 1,785.05), Gujarat Ambuja (up 1.93 per cent at Rs 116) and Maruti (up 1.87 per cent at Rs 825).
The biggest loser in the Sensex basket was Hindustan Lever, down 1.28 per cent at Rs 200.50. Other major losers in the index included Infosys, Reliance Energy, NTPC, Satyam Computers and Wipro.