Nifty snaps 4-day sell-off, ends above 5800; RIL leads
29 Nov 2010
It was a nice pull back on Monday, led by oil & gas, technology, financial, capital goods, FMCG, auto and select healthcare companies' shares, after witnessing a sell-off in previous four days. The benchmark Nifty closed above the 5800 - psychologically important level. Short covering could be the reason behind this nice pull back, which was imminent.
Anand Tandon chief executive officer of JRG Securities believes that in the near-term, things look fine. ''We still are at a somewhat support level. If it was to go down below this that's when you see the selling but for now it looks like we have had several weeks of fall and a pullback should be due.''
UR Bhat managing director of Dalton Capital Advisors sees the Nifty at 6200-6300 levels in short term. "5,400-5,500 is where it should sort of hit in the worst case scenario but the upside could be reasonable, it may not be dramatic. I think 6,200-6,300 levels that we saw earlier are a hit straight for the short-term. But if it just gets pass 6,000, we should be happy."
However, cement, Anil Dhirubhai Ambani Group (ADAG) group companies' shares along with Power Grid, Tata Steel, Bajaj Auto, Siemens, DLF and Cipla were on sellers' radar.
The 30-share BSE Sensex closed at 19405.10, a rally of 268.49 points or 1.4% over Friday's closing value and the 50-share NSE Nifty rose 78.05 points or 1.36% to settle at 5830.
Fertiliser companies' shares rallied as Group of Ministers will meet on December 3 for urea decontrol. Chambal Fertiliser, Fertiliser & Chemical, GNFC, Madras Fertiliser, Mangalore Chemical, Nagarjuna Fertiliser, National Fertiliser and Rashtriya Chemical surged 4.5-9.7%. Deepak Fertiliser gained 2.58%.
