Nifty ends higher for 3rd consecutive session

Indian equity benchmarks maintained its uptrend for the third consecutive session. Amid choppy trade, the Nifty touched the 5500-mark for the first time in the last seven sessions. The market was supported by oil & gas, financial, telecom, Anil Dhirubhai Ambani Group, cement and power companies' shares.

Rahul Mohindar of viratechindia.com said this would extend to about 5620-5650 on the Nifty. "One thing heartening is certainly that the volume is very good. I feel that this will extend to about 5620 to 5650 and that will be a good testing point for the market. On the downside, key support would be now 5320. I think banking could lead from hereon and could really steer the market up ahead," he explained.

It seems that this could be the pre-budget rally as the Nifty swiftly move from 5200 level to 5500-mark with the feeling that negatives are over for the time being.

Amit Dalal, Executive Director of Tata Investment Corporation feels that all fundamentals are supporting it. "We have a reversal taking place perhaps in oil price which had gone up to USD 90, which is now trading in the 80s. Inflation is slightly lower, price of onions are Rs 15-20. Therefore the negative flow threat which was continuous for the last 2 or 3 weeks may not to be at the same extent."

According to him, one big barrier for the market to go up further from hereon will be the fact that confidence has gone away.

The 30-share BSE Sensex went up 71.60 points or 0.39%, to end at 18,273.80 and the 50-share NSE Nifty rose 25 points or 0.46%, to settle at 5,481.