Sensex surges 265 points to close at 19143 - Consortium

Sensex surged by 265 points (1.4%) to close at 19143, and Nifty soared by 86 points (1.50%), posting biggest gain of 2013 so far. BSE mid-cap and small cap stocks also participated in the rally and gained over 1% each. There was aggressive buying on beaten down stocks like Metal and Banking which were hammered in last few sessions.

Traders seem to have covered short positions after global markets like US, Asia and Europen markets surged close to 5- year high. Many stocks witnessed smart rally from the intra-day low. Cement majors - ACC and Ambuja Cement recovered over 6% from the intra-day low.

European stocks climbed to a 4 1/2- year high amid speculation that central banks around the world will continue with measures to support economic recovery and UK PMI data ahead of expectation.

Many momentum stocks like Arvind Ltd, Aurobindo Pharma, PFC, Prestige, India Bull Real, Adani Power, IFC surged by 5-8% each. Auto, Tech and Capital Goods stocks witnessed fresh buying. None of the major Indices was in red. In Mar series for Nifty, Highest Call OI is at 6000 strike with 6.5m shs up 0.3m shs and highest Put OI is at 5700 strike with 8.3m shs up 1.2m shs. Nifty 6100 Mar CE OI increased by 0.8m shs to 4.5m shs and 5800 Mar PE OI increased by 1.1m shs to 5.6m shs.

FIIs bought yesterday in cash,index futures and stock futures which acts credence to the rally. For the day coming by, expect Nifty to extend gains on supportive global cues.

Almost four years after the bear-market low, the Dow Jones Industrial Average pierced through levels last seen in 2007 to close at a record high of above 14,200 on Tuesday, boosted by an upbeat ISM non-manufacturing index and amid ongoing monetary support from the Federal Reserve. Asian shares surged to fresh highs on Wednesday, extending the previous day's rally. Australia's ASX 200 index and the Nikkei both hit fresh four-and-a-half-year highs.

The Nifty has rebounded and whether it is a sucker's rally or not would be known if it crosses 5850. Around that level is the last high as also the 100 days SMA. A crossover above 5850 would signal a move up, else the downward trend would revive. Resistances are at 5805, 5820 and 5850. Supports are at 5760, 5740 and 5720.

Source : Equity Bulls

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