Market Postmortem

Market Postmortem on 21.07.08
After the extremely volatile day market managed to end on a positive note shrugging all the political drama and the last hour it rallied bravely ignoring the negative European opening.
The leaders were banking and Reality stocks again as they are covering their dues, though barring the Capital Goods index all the other major BSE Sectoral indices ended in green.
Major Gainers
The major gainer among banks were Indian Bank with 14% gain, other major stocks which gained were Nalco(10%), Max India(9.80%), LIC Housing Finance(9.05%), Sintex(7.7%) and Bajaj Auto and Union Bank (7.60%).
Other stocks which showed a good recovery were BOI, PFC, Hero Honda, Praj Industries and ICICI bank. Last half an hour the market belonged to Reliance Industries with a smart gain and now at 2152 Rs.
Major Losers
Among the major losers were Satyam computer(4.14%), Ambuja Cement(2.17%), BHEL(1.56%), Larsen and Toubro(1.26%) and Bharti(0.44%).
Finally the Sensex gained 214 points to close at 13,850 and the Nifty surged 67 points to close at 4,159.
In the overall market, 1,163 stocks advanced and 1,368 stocks declined. Whereas, 84 stocks were unchanged.
Volume Toppers
IDFC was among the most traded counter on the bourses. Others like, RNRL, RPL, JP Associates, Chambal Fertilier, Satyam, Idea, Renuka Sugar, RPower and ICICI Bank were among the stocks in demand in the liquid universe.
POST MORTEM
The up side movement was mainly due to heavy buying all around and short covering as tomorrow onwards a new picture will be visible. As it is expected that the Government will survive seeing its track record of past. Cooling crude have set a new confidence in market giving bears a serious blow.
Still worries are left and we have to wait for the credit policy meet where a hike in CRR by 25 bps is expected then we can see some more corrections.
Market Next Trading Day
As European market are trading in Red and enough up move has been seen in US and Indian market a correction is expected in both the Indian and US market after three straight session gain. Volatility will persist and Crude which is above 131 now will again play a crucial role.
Details will be at market Today but in brief hot sectors will be again Banks and Reality. Though direction may be towards negative side.
Hot stock may be 3i Infotech on agreement with Bank of India, to implement AMLOCK(TM), the company's award winning Anti Money Laundering (AML) software