Posted By : Kishore B.S
Hi Friends !!!
The S&P CNX Nifty opened at 4,869.85; about 38 points lower compared to its previous closing of 4,907.80 following the slump across the global markets due to political turmoil in Eurozone and depreciation in rupee to 54 per dollar and the other global markets, managed to gain significant traction on Tuesday. The Moody’s Investors Service downgrading of the long-term debt and deposit ratings for 26 Italian banks on Monday, citing the country’s recession and rising bad debt levels . The German GDP figures indicated that the Europe’s largest economy grew much more than expected in the first quarter, rising 0.5% q-o-q and 1.2% from the corresponding period last year which propelled the Uptick in the Indian market today.
Among the sectors IT, Power and capital goods did well and contributed to the positive flow of the markets with L&T gaining nearly 6%,19 stocks advanced against 11 declining on the BSE index, and 33 stocks advanced against 17 declining ones on the NSE index, respectively.
The positive uptick could also be collated to some value buying at current levels where most of the stocks are trading are cheaper valuations after posting the Quarterly results recently.
Though the Indices were positive yet they failed to crossover higher resistance levels due to selling pressure which restricted the momentum to some extent.
Now it remains to be seen whether the lows recorded yesterday around 4860 levels would provide the cushion or would be faltered upon, thereby also furthering the direction of the markets.
(Inputs: Mr. Shiv Teja, Associate – Stock Market Institute, Bangalore)