Sensex rebounds…Nifty ends above 100DMA

It was just opposite of what we saw yesterday on Dalal-Street, the Indian stock markets bounced back sharply on Wednesday tracking a rebound in global equity markets. Trades and investors seem to have already forgotten about the dismal IIP data and disappointing Infosys results. After opening near day’s low, the benchmark indices were on a constant uptrend throughout the day, the NSE Nifty ended above the 100DMA as well.

The bounce back was led by the Oil & Gas, Realty and the Auto stocks. Even the Auto and the Pharma stocks contributed in today’s bounce. The Mid-Cap and the Small-Cap stocks also saw some buying. However, only the IT stocks saw some offloading during the day.

Within the Sensex and Nifty, the top gainers were DLF, M&M, Bharti Airtel, and ONGC, while Tata Power, Infosys, HUL and Wipro were among the laggards.

The shares of Bajaj Finance, Dewan Housing and J&K Bank witnessed a spurt in trading volumes.

The shares of TVS Srichakra and Motherson Sumi witnessed new all time highs.

Globally, all seem to be well in China as Q2 GDP rose 9.5% YoY. While, June industrial output grew 15.1% YoY and retail sales climbed 17.7% YoY. However, the worries of the eurozone credit crisis worsening persist with Ireland been downgraded to junk status by Moody’s. In addition, the stalemate continues in the US over the debt ceiling.

"The NSE Nifty attempted to fill yesterday’s falling gap on the daily charts, however was unable to fill it completely. The index also managed to end above the 100DMA (5566 levels) indicating some strength in today’s move. However, the Nifty continues to trade below the 200DMA, so one cannot rule out selling pressure," says Amar Ambani, Head of Research, IIFL - India Private Clients.

Finally, the BSE Sensex ended at 18,596 adding 184 points. It had earlier touched a day's high of 18,626 and a day's low of 18,465. It opened at 18,468. The NSE Nifty closed at 5,585 adding 59 points.