Nifty recovers smartly on short covering - Alex Mathews

The market had opened on a negative note tracking global markets and moved in a range in the red till the first part of the afternoon session but we saw smart recovery in the markets powered by buying interest coming in from the investor side being the March F&O expiry.

The short covering which happened in the second part of the day took the market to the top and closed near to it. The rollover figures were decent at around 60%. The initial sluggishness was on the back of the increasing inflation number which rose 16.22% in the year to 13 March 2010.

Also comments came from the Planning Commission that the country must raise the prices of fuel, fertilizer and food which are sold under various welfare schemes so as to keep the subsidy bill around the target levels. On the global front, Credit rating agency Fitch has lowered the credit rating of Portugal and also the European Union leaders are meeting today to discuss action for to resolve the debt issue of Greece. Also during the day, news came out that the Dubai government will commit $9.5 billion in new funding to extend a helping hand towards Dubai World to deal with its debts.

In the European front the markets were in green as they await the decisions from the meeting of EU leaders which is supposed to be held today and the US index futures were also in green helping our markets to close in green with Sensex up 0.62% and Nifty up 0.67%.

On the sectoral front the major gainers were Healthcare, Bankex, Technology, Realty etc while the losers were PSU, Consumer Durable, Oil and Power. Pharma sector stocks like Bal pharma, SMS pharma, Ajanta Pharma, Panacea biotech, Surya Pharma, aarti drugs etc made good gains. Other gainers were Valecha Engineering, HBStock while the losers were Shyamtel, Autolit, NMDC, Uniply etc.

Tomorrow we are going to see first day of the April F&O contract and so renewed interest could be seen in the markets.

Source : Equity Bulls

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