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Market Report

Tuesday, 05-Mar-2013

NSE

  • The Sensex regained 19,000 level by surging the most in three months. Sensex spurted by 265.21 points, or +1.40 per cent to close at 19,143.17 today, recording its biggest single day gain since November 29. Similarly, the broad-based National Stock Exchange index Nifty shot up by 85.75 points, or +1.50 per cent, to 5,784.25 led by premium stocks.

  • Brokers said the market remained bullish after Finance Minister P Chidambaram said that the government will soon announce more measures to boost economic growth. Banking and interest-sensitive stocks were on the fore-front on expectations of interest rate cut by the Reserve Bank of India in its policy review this month, they said.

  • Trading sentiment further bolstered as Asian stocks surge and European stocks rose to over four-year high amid speculation that central banks around the world will continue with measures to support economic recovery.

  • The midcap correction is done and I don't see any more correction barring domestic liquidity issues and margin calls, said Sanjay Dutt of Quantum Securities Pvt Ltd. Also, if RBI does take action on a rate cut, sentiment would get back to normal, he added.

  • At 5750, market should bounce back, said Mitesh Thacker. The market has kind of captured 5750 and there should be more of bounce back. What has happened on Tuesday is that we have had a gap up opening and then gap was never filled so 5725 becomes a re-interest support area, 5722 which is intra-day low and in case you get a pull back or minor declines to about levels of 5750 that again becomes a buying zone, he adds.

  • Nifty likely getting close to 5950-5970, says Ashwani Gujral. It will be slow sometimes, sometimes the markets will rally hard but an intermediate low is in place and on the Nifty. News etc will take it up there because if everybody is short, then who is left to go short. It will take time for those shorts to clear out and people to take fresh shorts at higher levels. So 5950-5970 is a good possibility and maybe the entire market will not participate but larger cap stocks should outperform, he adds.

  • Nifty may rise to 6500-6700 levels by 2013-end, said Gul Tekchandani. I am hoping that in March we could see a rate cut and 75-100 bps rate cuts would not be surprising in a year. If the expenditure is controlled, we are in a pretty good shape. We will see 6500-6700 or even 6800 towards the end of the year in this calendar year, says Tekchandani.

NIFTY 3-Month

(Data/Charts courtesy NSEI/Yahoo!/iCharts/The Economic Times)