Stock markets up by 236 points on bulls entry
Robust buying support from institutional as well as retail investors propped up the Sensex by a whopping 236 points.india Updated: Jun 22, 2006 18:01 IST
Bulls were seen further strengthening their grip over market sentiments as robust buying support from institutional as well as retail investors on Thursday propped up the benchmark Sensex by a whopping 236 points.
A comfortable closing above the 10,000-point resistance level on Wednesday further boosted the market sentiments and a sharp rise in volumes indicated the return of retail investors as well, following the recent meltdown seen on the bourses.
The Bombay Stock Exchange 30-share sensitive index opened firm at 10,093.38 and later moved erratically in a range of 10,362.74 and 10,093.38 before ending the day at 10,275.88, representing a 235.74 points over the previous close of 10,040.14.
The National Stock Exchange's S&P CNX Nifty also advanced by 71.30 points or 2.44 per cent to 2,994.75 from previous close of 2,923.45.
A sharp rise in volume is indicative of increased retail participation while volatility has become a part of the game, the marketmen said.
Today's stocks rally was powered by short-term buying signals as the market has turned technically strong, they added.
Buoyed partly by a strong global advices, bulls entered the market, which has broken the psychologically important resistance level for the first time after tumbling from May 11 historic high of 12,671.11 to a low of 8,799.01 on June 14.
The market remained highly volatile after the midsession as bull operators became active, making fresh commitments in key stocks that in turn, forced bears to cover short positions, market players said.
Foreign Institutional Investors (FIIs) and day-traders, however, were believed to be sellers at higher levels.
The technical signs show that the markets could move upwards as it has crossed another strong resistance level of 10,200 points, analysts said.