Equity benchmarks closed with moderate gains after showing a smart recovery in last couple of hours of trade on Thursday. Technology, financial and select power companies' shares led the recovery and pulled up the Nifty above 5700-mark. NIfty finally ended the day at 5711.60 up 0.36 % and Sensex at 19046.54 up 0.36%.

The broader indices ended up with moderate gain. S&P CNX 500 was 0.30 % & CNX Midcap was up 0.36%. Amongst sectoral indices, CNX IT was up 1.19% and Bank NIFTY was up 1.73%.

Top three gainers were ICICI BANK(2.68%), RCOM(2.68%) and HDFC BANK(2.00%). Top three losers were GAIL(-2.85%),ITC(-2.51%) and RANBAXY(-1.99%).

The turnover in NSE cash segment Rs 13346.89 crore and Rs. 147980.26crore from NSE F&O segment.

Short term Strategy:

It was quite an eventfull day for markets from the technicals perspective.

Even though Nifty again breached the level of 5650 in day’s trade, it refused to show any weakness below it. We had mentioned in previous day’s report that bearish bias is confirmed if NIfty decisively sustains below the level of 5650 after which downsides open up to 5500 and lower. However, NIfty failed to sustain below 5650 and this hints of accumulation happening at around 5650 levels. This implies that smart money may be entering the market at such levels. The swift recovery that occured in the last few hours of trade further confirms our theory of a bottoming out in the short term. 

For medium traders, it would still be safe to be sitting on the sidelines and one should wait for a confirmed reversal of trend before proactively taking any long positions.