Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed sharply higher on Oct 04 recording the best day in 5 weeks aided by positive global cues. Nifty opened gap up and kept inching up through the day. At close, Nifty closed 2.29% or 386.9 points higher at 17274.3.
Volumes on the NSE were surprisingly low compared to recent average. Among sectors, Metals, Power, IT, Banks, Capital Goods and Realty were the main gainers. Broad market indices performed either in line or worse than the Nifty. Advance decline ratio was sharply positive at 4.28:1.
Asian and European stocks rallied on Tuesday after Wall Street soared overnight, fuelled by hopes that weakening US economic data would lead to a change in global central bank policy. The Reserve Bank of Australia raised its benchmark interest rate by 25 basis points vs 50 basis points expected.Britain's decision to ditch part of a controversial tax-cut plan and slightly paler expectations for aggressive central bank action returned some confidence to investors.
Nifty smartly broke out upwards after sideways consolidation. It will now face resistance in the 17291-17401 band while 17176-17196 band will offer support in the near term.