Indian Stock Markets recover to close higher, Jubilant Foodworks makes dream debut

By Alex, Research head - Geojit BNP Paribas Financial Services

The markets had opened on a downside note and very soon moved into the green before making a dip in the morning session to touch the lowest point of the day. In the second part of the day, we saw huge buying which made the market to reverse its direction and touched the highest point of the day but later came down from the highs to close for the day in green near to the other day's close.

The new listing of the day Jubilant FoodWorks zoomed 65.9% on its debut day with increased optimism.

In the morning trade, growing fears of European fiscal situation, rising US jobless claims and also concerns over the possibility that the government may start rolling back its fiscal stimulus in the upcoming budget made the markets to slip. Later in the second part of the day, IT stocks, Telecom, realty and banking stocks helped the market to move back into green. Further, raised government forecast of our economic growth for the fiscal year ended March 2010 at 7.2% as against 6.7% too helped in the surge. In the second part of the day the European markets as well as the US index futures markets opened on a firm and positive note lending support to our markets and finally our markets came to a close with Sensex up 0.13% at 15935.61 and Nifty at the same time closed at 4760.4 up 0.07%.

Today we saw tremendous recovery on Nifty which came down to 4675 and reversed its direction, but it is too early to say that it is the end of a bear market. A firm trend reversal can be seen only after few more trading sessions. The European markets which had opened in green have turned red. For Nifty the major support is there at 4674 and 4635 while the resistance is there at 4800 and 4845 levels.

Source : Equity Bulls

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