Equities snap losing streak: RIL ends 4% up

Equities snap losing streak: RIL ends 4% up
Short covering ahead of expiry, Nifty support at 4100

Fresh buying as well as short covering at lower levels saw equities close higher Wednesday. Gains in heavy weight Reliance Industries and ONGC supported the benchmarks while losses in HDFC capped gains.

Bombay Stock Exchange’s Sensex closed at 14,234.79, up 128 points or 0.90 per cent. The index touched a high of 14,248.65 and low of 13,731.54 in the day. National Stock Exchange’s Nifty ended at 4,249.65 up 58.55 points or 1.39 per cent. The broader-Index touched an intra-day high of 4,264.55 and low of 4,093.20.

BSE Midcap Index closed 0.59 per cent higher at 5,746.66 and BSE Smallcap Index ended 0.74 per cent up at 7,058. Biggest Sensex gainers were Reliance Communications (up 7.2%), Tata Steel (4.46%), DLF (4.19%), Reliance Infrastructure (4.17%), Tata Consultancy Services (4%) and Bharti Airtel (3.98%). HDFC (down 4.29%), Wipro (2.91%), Cipla (2.75%), Infosys Technologies (2.48%) and ITC (2.46%) were the losers. Market breadth turned positive with 1382 advances and 1251 declines. (All figures are provisional) .

Equities snap losing streak: RIL ends 4% up
Sensex regains lost ground; Tata Steel, TCS support
Nifty June flat to spot; oil & gas, metals gain
Nifty holds gains; global cues aid
Short covering in oil & gas, Nifty June discount widens
Market recoups losses, but banks still suffer
--------------------------------------------
Mkts end higher led by short covering; shrug off rate hike

It was a smart pull back rally for the markets on strong volumes in last one hour of trade after remained volatile for major part of the day, ahead of F&O expiry day for the month of June. It was mainly because of short covering in the F&O market, which has started in yesterday's trade. It shrugged off completely the effect of RBIs move, which hiked Repo rate and CRR by 50 bps each yesterday. Rally in late trade led by oil, telecom, and select metal, IT and capital goods stocks. Midcap and small cap stocks also bounced back.

Markets had witnessed sharp sell off in opening trade due to RBI's move but managed to show sharp recovery in the first one hour of trade itself and turned into choppy mode since then. The Nifty went below 4100 mark and the Sensex below 14000 in early trade. But due to smart buying support and short covering in F&O, markets jumped up in late trade.

The Sensex has recovered nearly 488 points and the Nifty 159 points from day's low of 13,731.54 and 4093.20, respectively. The Nifty closed at 4252.65, up 61.55 points or 1.47% and the Sensex at 14,220.07, up 113.49 points or 0.8% after hitting an intraday high of 4264.55 and 14,248.65.

Main contributors in today's rally were Reliance Industries, Reliance Comm, Bharti Airtel, Tata Steel, BHEL, TCS, DLF and ONGC.Amongst frontliners, Unitech was up 7.87%, Reliance Communication 7.30%, Tata Steel 4.43%, DLF 4.30% and Reliance Infrastructure 4.17% while HDFC lost -4.29%, Wipro -2.91%, Cipla -2.54%, Infosys -2.48% and Power Grid Corp -2.76%.

More @Mkts end higher led by short covering; shrug off rate hike

Buzzers-
LG Bros up 20%; Renold to acquire Industrial Chain Biz Of~LG Balakrishnan For 5.7 m Pounds-Niraj Cem up 20%; Recent listing-
GHCL up 10%; Dow Chem to increase prices by another 25% in July-
Spice up 17.2%; market believes that Spice group will pump more money in Spice Mobile
-Sasken Comm, HOEC, BOI, Punj Lloyd, Shree Renuka, Rel Cap.

F&O Snapshot
Nifty rollover at 53%, Market wide at 53%
Short covering seen in the Nifty futures
Nifty June at 8 pts discount Vs 19 pts disc in the morning
July futures at 42 pts disc Vs 50.7 pts disc in the morning
Cement and construction continued to witness strong rollovers
Options:
Nifty 4200 July call adds 12.9 lakh shares
Nifty 4300 July call adds 10.3 lakh shares
Nifty 4000 July put adds 6.8 lakh shares

Star Trade:Sasken up 14%; adds 2.4 lakh shares in July
Fresh Longs:Hind Oil up 9%; adds 12 lakh shares in JulyCentury Text up 9.3%; adds 5.5 lakh shares in JulyBombay Deying up 8.4%; adds 2.1 lakh shares in JulyEssar Oil up 4.3%; adds 8.6 lakh shares in JulyReliance Ind up 3.5%; adds 16.7 lakhs shares in July Tata Steel up 3.8%; adds 21.9 lakh shares in JulyRPL up 4.5%; adds 1.1 cr shares in July SAIL up 3.2%; adds 55 lakh shares in July
Short Covering:Bank of India up 8.5%; sheds 1.7 lakh shares in July
Fresh Short :Oriental Bank dn 6%; adds 3.3 lakh shares in JulyYes Bank dn 4.5%; adds 6.6 lakh shares in July.



Source: ET, Moneycontrol.com