Mumbai – The stock markets were firm on the back of profits in capital goods and metal stocks. Shares of cement companies soared chaired by Ambuja Cements. Real estate stocks also came up.

Equities opened up in high spirits tracking positive worldwide cues. US stock markets finished approximately 2% higher, and Asia indices arose more than 2%. Today, the Bank of Japan left rates of interest unaltered at 0.5%, further bettering sentiment.

Bharat Dalal, Head of research at Dawnay Day AV Securities said, “Based on positive global cues, the market opened higher. However, it is doubtful whether the bounce back will sustain.”

“Nifty futures have made a downward runaway gap at 4245 and 4325 levels. Until this gap is filled up, each bounce back should be used as an opportunity to exit. Normally, downward runaway gaps occur after a bottom is formed and a fresh up move starts.” he notified.

“The 20-day SMA is currently at 4309, where the Nifty faces strong resistance. Nifty also faces resistance at 4250-4280 levels. In case the gap is not filled in the next couple of trading sessions, we could witness another bout of selling,” Mr. Dalal added.

In early trading, (11:10 am), the Nifty stood at 4223.10, which is higher by 70 points from its last closing figure. On the other hand, the Sensex increased 265 points to 14,513.50. The major players on the Sensex comprise Ambuja Cements, HDFC, Grasim Industries, ACC, and Larsen and Toubro. There were no losers in the 30-share index.

The overall market breadth was positive, and there were 1688 progressions as against 557 declinations on the BSE, whereas the NSE showed 926 advancements and 143 diminutions.

Holcim Group adopted 3.9% stake from the Ambuja Cements promoters at Rs 154 each share for about $220 million. It has also made an open bid to get hold of 20% equity shares of the cement major at the same price. Ambuja zoomed more than 4% to Rs 136.15.