Tomorrow Indian Stock Market will remain in positive and expected to move up by 2-3%, mainly due to short covering, because people are expecting further rise in the market to continue for some more time.
Indian markets posted handsome gains Wednesday on the back of a rebound in global equities and fall in crude oil prices. The strong global cues lifted investor sentiment and drove the bears to cover their shorts ahead of F&O expiry Thursday.
National Stock Exchanges' 50-share Nifty closed 2.95 per cent higher at 4313 and July futures provisionally settled at 17 points premium. Nifty August futures ended the day at 20 points premium. Nifty July premium widened from 9 points on Tuesday.
Rollovers to Nifty August contract was 50 per cent. Bears have written calls at strike 4300, 4400 and 4500. Surprisingly, one saw players shedding positions in calls. Bulls bought calls at strike 4200. A solid tussle was observed between bulls and bears at 4300 put. However, bulls wrote calls at strikes 4200 and 4100.
“We have seen some relief rally in the last few sessions which was good for markets. From a short term point of view, one can expect Nifty to test 4600-4700 levels. However, from a medium-term perspective, the sentiment is still bearish. Support for Nifty is seen at 3800 levels,” said Sachin Chavan, an independent analyst.
Reliance Industries July jumped 3.94 per cent, Reliance Natural Resources climbed 11.85 per cent, Reliance Petroleum July advanced 3.13 per cent and Reliance Capital current month rose 5.9 per cent on short covering.
Rollovers in Cairn India (54%), ICICI Bank (68.8%), Ranbaxy (60%), Reliance Natural (52.89%), SAIL (52.11%) and State Bank of India (55.74%) were healthy. Total turnover in F&O segment on NSE was Rs 58,543 crore, down 9.6 per cent from Tuesday.
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