MUMBAI - Equities came off early highs as nervous traders used the rise to exit positions. The rate cut in the US late on Tuesday, has provided the necessary relief to the panic struck market, but one cannot expect the immediate rebound to sustain, given the way with which shares fell on Monday and Tuesday.
“The daily charts indicate the market was in a deeply over sold zone, so a relief rally was inevitable. But the sentiment cannot be reversed over night. Recovery is underway,” said Suresh Kumar Iyer, technical analyst at Asit C Mehta Investment Interrmediates.
“A strong trigger is now needed for the market to sustain at higher levels as traders are still cautious. FIIs have to come in and buy strongly, but until that happens, we will continue to see profit taking at the tops. Short term players are advised to stay away as the immediate trend remains unclear. But the volatility has reduced, which is a positive sign,” he added.
At 11:45 am, the National Stock Exchange’s Nifty was up 218 points or 4.46 per cent at 5117.70. The index touched a high of 5276.30 and low of 4891.60 so far. The Bombay Stock Exchange’s Sensex was up 696 points or 4.16 per cent at 17,426.70, making a high of 17,676.60 and low of 16,951.03.
Biggest Sensex gainers were NTPC (up 7.78%), BHEL (7.5%), Reliance (7%), Reliance Energy (6.62%), Reliance Communication (6.58%) and HDFC (6.44%) Sensex Losers are Wipro (down 2.18%), Bharti Airtel (1.54%), Ambuja Cement (0.26%). Long term investors are advised to buy into blue chip stocks which have corrected sharply over the past two days and are currently trading at attractive prices.
At its first emergence meeting since 2001, the Federal Reserve cut the interest rate by 75 basis points to 3.5 per cent yesterday and gave indications that it will lower rates further. Key indices in the US ended off lows, while Asian shares witnessed a good rally after a 2-day slump. The Nikkei was up 1.97 per cent, the Hang Seng was up 5.29 per cent and the Straits Times was flat.
“The daily charts indicate the market was in a deeply over sold zone, so a relief rally was inevitable. But the sentiment cannot be reversed over night. Recovery is underway,” said Suresh Kumar Iyer, technical analyst at Asit C Mehta Investment Interrmediates.
“A strong trigger is now needed for the market to sustain at higher levels as traders are still cautious. FIIs have to come in and buy strongly, but until that happens, we will continue to see profit taking at the tops. Short term players are advised to stay away as the immediate trend remains unclear. But the volatility has reduced, which is a positive sign,” he added.
At 11:45 am, the National Stock Exchange’s Nifty was up 218 points or 4.46 per cent at 5117.70. The index touched a high of 5276.30 and low of 4891.60 so far. The Bombay Stock Exchange’s Sensex was up 696 points or 4.16 per cent at 17,426.70, making a high of 17,676.60 and low of 16,951.03.
Biggest Sensex gainers were NTPC (up 7.78%), BHEL (7.5%), Reliance (7%), Reliance Energy (6.62%), Reliance Communication (6.58%) and HDFC (6.44%) Sensex Losers are Wipro (down 2.18%), Bharti Airtel (1.54%), Ambuja Cement (0.26%). Long term investors are advised to buy into blue chip stocks which have corrected sharply over the past two days and are currently trading at attractive prices.
At its first emergence meeting since 2001, the Federal Reserve cut the interest rate by 75 basis points to 3.5 per cent yesterday and gave indications that it will lower rates further. Key indices in the US ended off lows, while Asian shares witnessed a good rally after a 2-day slump. The Nikkei was up 1.97 per cent, the Hang Seng was up 5.29 per cent and the Straits Times was flat.
No comments:
Post a Comment