Sensex up for 4th day…Nifty above 50, 100DMA

The Indian stock indices eked out modest gains on Tuesday, rising for a fourth consecutive trading session. The BSE Sensex closed within shouting distance of 18,500 and the NSE Nifty ended near 5,550.

Firm cues from the international equity markets coupled with encouraging FII inflows in the past few days enabled the benchmark indices to end in the positive terrain.

The Government's bold steps on fuel prices last week and optimism about Greece getting a fresh rescue package soon also played a role in the advance today.



In the past three days, the advance was led by strength in the Large-Cap shares but today it's a different story, with the non-index counters out-performing their frontline peers.

It was a choppy trading session. After slipping below 5500 in the morning trades, the NSE Nifty bounced back, led by gains in Pharma, Capital Goods and Auto stocks. However, Oil & Gas and Realty stocks were the major laggards.

The Nifty managed to close above the 50-DMA and the 100-DMA today, suggesting that the momentum may just sustain for a few more days.

Technically, the Nifty has a cluster of resistance between 5540-5590, which is based on extension of horizontal from left shoulder. The index has reversed four times in the past from approximately the same levels.

"Just when everyone was thinking about the market cracking further comes a pleasant surprise in the form of a four-day rally. FII flows have partly powered this rally while the Government’s move on fuel prices has also been greeted with cheers. Globally too, things haven’t really got worse, with Greece, in all probability looking like averting a default," says Amar Ambani, Head of Research, IIFL - India Private Clients.

The BSE Sensex ended at 18,492 adding 80 points. It had earlier touched a day's high of 18,527 and a day's low of 18,323. It opened at 18,493. The NSE Nifty closed at 5,545 adding 19 points.

Hindalco, Bajaj Auto, HDFC, BHEL, NTPC, PowerGrid, Tata Motors are the major gainers in Sensex and Nifty.

DLF, JP Associates, Jindal Steel, Wipro,Tata Steel, SAIL and Ranbaxy are the major laggards in Sensex and Nifty.

Outside the index, the major gainers were JP Infra, Jain Irrigation, LITL, Jub Foodworks and GMR Infra. Among the major losers were Sun TV, PFC, Union Bank, Allahabad Bank and Mannapuram Gen.