BSE Sensex Gains 397 Pts; Nifty Up By 100 Pts

The 30-share index, BSE Sensex continued to trade strong on the back of BSE Sensex Gains 397 Pts; Nifty Up By 100 Ptsstrong worldwide markets, a sharp decline in crude oil rates and short-covering ahead of July series derivatives expiry.

All these positive signals helped several front line stocks to record handsome gains.

The stocks, which were beaten down after the central bank announced a rate hike got well to lead the rally.

At 12:37 pm, Sensex has gained 397.63 points at 14,189. 7, while the broad-based Nifty stood at 4290.40, up 100.55 points.

The major movers on the Sensex included HDFC (6.5%), HDFC Bank (6.35%), Tata Steel (6.25%), Reliance Infrastructure (5.2%), ICICI Bank (5%), BHEL (4.5%), Tata Power (4.5%) and Bharti Airtel (4%).

The other stocks, which have risen sharply today, were Wipro, Ranbaxy Laboratories, Reliance Communications, DLF, State Bank of India, Satyam Computer Services, ACC, Jaiprakash Associates, Reliance Industries, Grasim Industries and Infosys Technologies.

In contrast, the major losers included Hindustan Unilever (down 0.25%), ITC (down 1.2%) and NTPC (down 3.95%).

Tata Communications (up 7.3% at Rs 434.15) was the major gainer in the Nifty index.

The major gainers, which supported the Nifty included GAIL India, Tata Power, Punjab National Bank, Suzlon Energy, Hero Honda, BPCL, Power Grid Corporation, SAIL, ABB, Idea Cellular, Reliance Petroleum and Sun Pharmaceuticals.

Mr. Suresh Kumar Iyer, technical analyst at Asit C Mehta Investment Interrmeidates, said, “The Nifty has resistance at 4210,4247,4316,4341 and 4370. Strong support for the index comes in between 4132 and 4089-4101. The other support is at 4046.”

He also advised traders to hold short positions and try to cover them near the support zone.

“If Nifty reaches 4089-4101 levels, traders with a high-risk appetite can initiate longs with a stop loss at 4046,” he added.