Swift bounce back suggests further upside ahead
The markets were in a euphoric mood all along the trading session after the ECB announced an unlimited bond-buying program to stimulate the stalled European economy. Nifty opened positive and maintained its upward momentum throughout the day to end the day with a gain of 103 points at 5342. Amongst the sectoral indices the BSE CG and Realty indices were up the most. All the indices gave a positive close.
The 2% - 3% rally in European indices yesterday was followed by a near 1% rise in indices as positive mood continued in Europe. However, there was a small blemish to this euphoria which went unnoticed. The ECB also predicted a cut of 0.4% in GDP growth for CY2012 against its previous prediction of a 0.1% cut.
Nifty opened higher with a gap and maintained its momentum to conclude at 5342 with a gain of 103 points. It has swiftly retraced its recent fall and is now trading near the resistance of 5360. In the immediate term the level of 5260 has now turned as a support. Any decline below that would confirm further sell off till atleast 5000.However till the time it trades above 5260 it may test the resistance of 5360 and beyond that retest the high of 5450. Any advance beyond that may take it to the level of 5500 and beyond that 5592 is a possibility.
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