Indian stock markets traded positive all through the day, on Wednesday (August 6), gaining 159.17 points, during morning trade to touch a high of 15,422.82 but sank phenomenally by 349.28 points towards closing session.

Good buying activity was witnessed in sectors including Auto, Capital Goods and IT, whereas Healthcare, Realty and Power indices saw selling rally.

BSE Midcap gained 0.20%, whereas Smallcap index closed negatively after declining 0.68%.

After opening with a marginal gain of 3.4 points, Nifty soon touched a high of 4615.90 on Wednesday. Worldwide factors turned helpful with crude oil being at 3-month low at Rs 119.17, along with no change in interest rates by Federal Bank. Asian markets were also supportive.

Asian stocks surged on lower oil price hope, and saw the biggest rally in over three months, led by auto manufacturers and electronics makers, on rumor lower oil prices will decelerate inflation and encourage consumer spending.

Finally, the Sensex marked the day after gaining 112.47 points at 15,073.54, while the broad-based NSE Nifty ended 14.7 up at 4,517.55.

The stock market saw 1,266 advancements as against 1,444 declinations.

The major gainers in the 30-share index included Maruti Suzuki (6.25%), Tata Motors (4.31%), Bharti Airtel (3.59%), ACC (3.48%), TCS (3.32%) and BHEL(3.21%).

The major gainers in the 30-share index were Tata Steel (4.48%), Tata Power (3.65%), State Bank of India (3.49%) and Rel Infra (3.11%).

Stock market analyst Vishwas Agarwal said, “On the BSE if the market falls below 15,150 level the markets will be weak upto the level of 14,888 and 14,786. On Thursday evening inflation figures are expected which are expected to be lower than that of previous week so I expect some buying will be seen after the mid-session. Till the mid-session market looks weak upto above given levels.”

He also said that overall markets are in the safety region until they are above 14,786 level.

While commenting on markets situation, Alex Mathew, head - research centre, Geojit Financial Services stated that Nifty opened with an upside gap, but long position holders reserved profits, due to overbought situation. The 5 day relative strength index (RSI) was higher than 75 during the morning.
    
According to him if RSI is above 70, market is said to be overbought.

Profit booking was seen in PSU banking and real estate firms, prior to inflation figures.

He also said that Nifty has support at 4,475 and 4,435 and recovery from these levels can be expected. He said that once Nifty trades above 4,616 levels then it can test 5,000 to 5,100 levels.

Mr. Mathew is of the opinion that sugar stocks are expected to zoom in coming days owing to fear of lower output and more use of sugar cane for the production of ethanol.

Sri Renuka, Bajaj Hindustan can be bought at declines, he advised.