Mumbai, June 8: A 124-point rally in the Sensex on Thursday has brought backthe feel good factor into the market. And the fact that Thursday's rally wasbroad-based with even stocks from the cyclical and the banking sectorsparticipating, market players feel that there is much steam left in therally. However, a select few also expect a correction which will make themarket healthy in the slightly longer term.After opening with an upward gap, the markets inched up gradually on strongdemand for pivotal stocks. According to dealers, the good thing aboutThursday's market was that the buying interests were not limited to the neweconomy stocks only, the old economy stocks too participated in the rally.
Along with Infosys, Satyam, Himachal and Global, HLL, SBI, L&T and MTNL alsomoved up and closed strong. However, the volatility that was witnessed inthe software stocks over the last few trading sessions continued on Thursdayalso but the closing in almost all these counters were strong.
According to market players, the immediate target for the Sensex is 4850which could be breached on Friday itself. ``With all-round buying coming inon Thursday, we are looking at an immediate Sensex level of 4850, i.e.another 100-120 points jump from the current level,'' said Chirag Sanghvi atAsit C Mehta Investment Intermediaries.
However, according to Ambareesh Baliga at Kotak Securities, after fiveconsecutive days of gains, Friday - the last day of trading in the currentsettlement on the BSE - looks to be a good day to book profit. ``Undertoneis no doubt bullish, but a reaction of around 200-250 points from thecurrent level will make the market healthier,'' feels Baliga. According tohim, in case of a reaction at the current level, we can expect a bull rallyin the medium term.
The participation of economy stock in Thursday's rally has infused freshhopes among the market players. Also buying sentiment in the economy stockswas not limited to retail interest only, according to dealers, there wassubstantial fund-based buying also in these counters. Although Sebi's FIIinvestment figures for Wednesday show a marginal outgo of Rs 4 crore,brokers are almost sure to have a positive FII figure for Thursday when itis made public on Friday.
On Thursday, volatility in the software counters was at its peak in thesecond half. Despite high volatility, counters like HFCL, Global Tele,Satyam Comp and Digital Computers recorded handsome gains. Meanwhile, withthe help of huge investment buying, old economy stocks provided major boostto the sensex. As a result of strong demand MTNL, L&T, ITC, Telco, ACC,SBI, IPCL, and Bhel managed to record handsome gains.
MTNL hit the 12 per cent circuit. The trading volume was quite high on boththe exchanges. The BSE Sensex opened at 4660.40 points, touched a peak of4746.88 points, and closed at 4728.81 points.
The low for the day was 4660.39 points. Similarily, the S&P CNX Niftygained 33 points at 1463.65 points. The open for the day was 1430.50 whichwas the low for the day, and the high for the day was 1468.70 points.Meanwhile, the trading volume on the BSE stood at Rs 3597 crore, and thesame figure on the NSE stood at Rs 5202 crore. At the same time, number ofadvances stood at 806, and the figure for declines was at 696. Around 164stocks remained unchanged.
Meanwhile, stocks which gained more than 7.9 per cen were GLobal Tele, MTNL,Tata Elxsi, Sun Pharma, Padmini Poly, IPCL, IDBI, Crest Com, Bom Dyeing,Advent Comp, Nath Seeds, Alok Text, Colour Chips, PCS, Frontier Info,Datapro Info, Peerless Shipping, ITI.
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