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  Business   Market  07 Mar 2019  A short covering rally is due

A short covering rally is due

THE ASIAN AGE. | RAVI RANJAN PRASAD
Published : Mar 7, 2019, 1:29 am IST
Updated : Mar 7, 2019, 1:29 am IST

The advance decline ratio was in favour of gainers on BSE with 1685 scrip's gaining and 1009 scrip's losing while 156 closed unchanged.

The advance decline ratio was in favour of gainers on BSE with 1685 scrip's gaining and 1009 scrip's losing while 156 closed unchanged.
 The advance decline ratio was in favour of gainers on BSE with 1685 scrip's gaining and 1009 scrip's losing while 156 closed unchanged.

Indian equity market benchmark Nifty-50 crossed 11,000 mark on Wednesday, only for the second time in the last three months as markets posted gains for third consecutive session with geo political tensions easing and expected USA's trade tariff on Indian goods not looking a big threat to Indian economy. Foreign funds were net buyers of Indian equities worth Rs 1130.78 crore as per the provisional data released by the stock exchanges.

The NSE's Nifty-50 opened well above 11,000 at 11024.85 but later dipped below 11,000 to 10,998.85 before resuming upward move to touch day's a high of 11,062.30 and finally closed at 11053 up 65.55 points or 0.60 per cent up. The Sensex closed at 36,636.10 up 193.56 points or 0.53 per cent.

The broader markets outperformed as the Nifty Mid-Cap 50 was up 0.73 per cent, BSE Mid-Cap gained 0.49 per cent while BSE Small-Cap up 0.97 per cent.

On the sectoral front barring BSE auto (0.24 per cent) all other sectoral indices gained led by BSE consumer durables (1.36 per cent), telecom (1.09 per cent), power (1.07 per cent), healthcare (0.80 per cent) and oil & gas (0.78 per cent).

The advance decline ratio was in favour of gainers on BSE with 1685 scrip's gaining and 1009 scrip's losing while 156 closed unchanged.

Technical View
Mustafa Nadeem, CEO, Epic Research said, "The Nifty for the second time in more than 3 months has given a breakout from the range of 11,000 -10,700. It has been in this range for more than 3 months. This time, we expect a breakout to last as breadth is much better as compared to previous scenarios given the fact that not just heavyweight indices like auto, financials, and energy are moving but also the much beaten down sectors like Mid-Cap, Small-Cap and PSU Banks Index."

"It is a matter of time we may see the short covering rally as well once we have closed above 11,180 marks that would also call in the fresh money in the market that will further propel the momentum. Trend strength indicators are showing much better signs for the bulls but the persistence of the trend above 11180 is still a flip of a coin," Nadeem said.

Market View
Sahaj Agrawal, Analyst, Kotak Securities said, "Momentum in the broader markets have picked up with action seen in Mid-Cap and Small-Cap stocks. After a long period of consolidation, across the board participation is seen. From the front line space, Banking, IT and Cement trade with a positive bias, further gains are expected. Metal and auto stocks are in consolidation. We remain positive on the markets and expect the Nifty to conquer 11,300 going ahead."

Tags: nifty-50, nse