Sensex scores triple ton…Nifty tops 5100

After two days of declines, bulls were back with a bang as the NSE Nifty surged over 100 points while the BSE Sensex shot up by more than 300 points on Tuesday. Just when one thought that we are in for another down day, markets did exactly the opposite. The key indices flourished despite weak cues from the US and select Asian markets. Sentiment got a boost after European markets rebounded after a soft start.



Technically, the Nifty has reached a very crucial juncture. On the daily charts, it has closed at 5140, which corresponds to the neckline of an inverted head and shoulder pattern. So, Wednesday’s session would decide whether the Nifty breaks out of the current H&S pattern or finds resistance at its neckline.

There was no looking back for our market today as IT stocks rallied on the back of the rupee touching a two-year low. The advance also received a boost as index heavyweights like RIL, SBI and ICICI Bank joined the party.

ONGC was the only laggard in the Sensex amid news that the Government was contemplating increasing its subsidy burden. BHEL was also in the red. All ADAG stocks were up smartly. Cairn India and private banking shares were the other notable gainers.

Eurozone continued to be in the spotlight as S&P downgraded Italy and kept its outlook negative. Greece continues to be in talks with the EU and IMF for the crucial second round of aid.

Reports also said that Greece fully paid two bond coupons amounting to 769 million euros that was due today.

"Greece should be able to get a green light from its international creditors today, helping it avert a default in the short term. But that ma not necessarily be the end of its woes or for that matter for the eurozone.

Meanwhile, the two-day FOMC meet and the political debate in the US over president Obama’s deficit-cutting measure will also have some bearing on the sentiment in the coming days. For India the next big catalyst could come from positive policy action or some softening in inflation. Corporate earnings next month will also be key to near-term direction." says Amar Ambani, Head of Research, IIFL - India Private Clients.

Finally, the BSE Sensex ended at 17,099, surging 354 points. It had earlier touched a day's high of 17,135 and a day's low of 16,758. It opened at 16,768. The NSE Nifty closed at 5,140, up 108 points.

All the BSE sectoral indices ended in the positive terrain. The BSE IT index was the top gainer, gaining 3.2%. BSE Teck index added 2.8% and BSE Consumer Durable index gained 2.7%. Even the BSE Mid-Cap index rose 1%, while BSE Small-Cap index added 1.2%