The market ended with strong gains on Thursday and on the day of expiry of F&O contract with the Sensex closing 412 points higher at 38,545, the Nifty gained 124 points to close at 11,570.
The major Sensex gainers were HCL Tech (3.84 per cent) , SBI (3.36 per cent) and YES Bank (2.71 per cent).
Despite flat opening indicated by the SGX Nifty, the market began the session on a positive note and soon rallied above 11500 in the early morning trade.
According to derivative analysts, since the beginning of March series, there were good amount of long formation in the benchmark Index and these positions have been rolled over to the next series.
Rollover in the Nifty was around 63 per cent during the day, which hints this percentage will be certainly higher in the EOD data.
Stronger hands continued their buying streak in equities, they bought to the tune of Rs. 28,863 crores in March series.
In F&O space, the bullish bets have formed by adding longs in the Index futures and Index call options along with writing in the Index puts. The Index futures 'Long short Ratio' surged to 63 per cent from 50 per cent seen during the start of the March series.
Technical View
"At current juncture, 11700 call and 11500 put options are attracting traders attention. Considering the above data points, we expect extension of ongoing momentum in the coming series. Traders are advised to trade with a positive bias and use declines to initiate fresh longs as we may soon head towards the record highs," Sneha Seth Derivatives Analyst, Angel Broking said.
Analysts said the market took note of latest monsoon update wherein the IMD shared possibility of strong monsoon provided no El Nino surprise. Besides, hopes of rate cut in the upcoming RBI's policy review meet further boosted the sentiment. Almost all the sectoral indices participated in the move and the broader indices showed noticeable strength.
After November, this was the first series to clock such big rally. The Nifty concluded with huge gains of 7.20 per cent; whereas for the Bank Nifty, it turned out be the historical one. The index witnessed a gigantic bump up of over 13 per cent, leading to fresh record highs.
Technical analysts expect new highs soon for the Nifty and in the coming session, 11603 would be seen as an immediate hurdle but it could surpass to head higher in the zone of 11640 - 11700. On the flipside, 11500 followed by 11413 has now become an immediate base.
