The markets staged a recovery in the last hour of trade, led by buying in oil & gas, capital goods, power, select technology and financial companies’ shares. At the end of the trading session, both the Sensex and Nifty, managed to close above their psychologically important levels - 20,000 and 6,000, respectively.
However, selling continued for stocks of cement and FMCG companies along with Bharti Airtel, Wipro, Tata Power, ICICI Bank, Maruti, Sterlite, M&M, Cipla, Sesa Goa, Hindalco and HDFC. Sensex closed at 20,168, up 44 points and the Nifty at 6,076, up 13 points. Coal India IPO opened for subscription today for retail and institutional clients. The company has set a reasonably cheap price band of Rs 225-245. The government intends to raise as much as USD 3.5 billion from the IPO.
Asian shares – Asian markets were mixed on Monday following subdued trading session in Wall Street on Friday. Additionally, the ending of the proposed USD 116 billion iron ore deal between Australian mining giants BHP Billiton & Rio Tinto dragged down resources plays. The deal was rejected by anti-trust regulators in Europe and Asia. Japan’s Nikkei 225 stock average fell 0.02% to 9,498.50. Broader Topix gained marginally, 0.50% to 830.52, and Australia’s S&P/ASX lost 37 points or 0.80% to end the session at 4,651.90.
European shares – Taking a cue from Asian markets and strengthening USD, Standard & Poor’s 500 Index futures lost 0.8% in the morning trade. All major European indices saw a marginal change from Friday’s close.
USD bounced from a 10-month low against a basket of currencies on Monday, as investors trimmed bearish bets against the greenback on some uncertainty about how the Federal Reserve will react. This in turn halted rally in precious metals and further extended downfall in oil.
Nifty in the intraday made a low of 5985 and closed above the 6000 mark at 6075.95. Nifty took good support at 20DMA and bounced back. As per the Japanesse candlestick pattern "Bullish Hammer pattern" have been created, but the conformation will be only after tommorrows trading session. nifty will face resistance at 6145 levels.