Stock Market blushes after 6-day rout to peep at daylight

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Sensex gains after reversing 6-day losing trends

By S Jha

New Delhi, May 10: On a day marked by choppy waves in the indices, Nifty reclaimed the 22000 levels on Friday. Nifty settled above psychological 22k levels with gains of an almost 100 points in the index.

Nifty almost took support from around 21950 to regain strength. This was the level from where Nifty had returned to bullish path after the last correction.

Sensex also gained over 260 points to end six-day-ling losing streak. The equity market drew confidence from the firm global cues.

It, however, may be noted that the global markets have been extending gains while Indian indices were cracking. The market participants have been firm of the linkage with the poll uncertainty for the corrections.

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Yet, the Bank Nifty remained weak. In fact, the banking and the realty sector extended losses on Friday also. The trend is in line with the weakness in the financial and the realty spaces amid eroding hope of sooner rate cuts.

The old street wisdom in the stock market remains that one should buy the panic and sell the euphoria. Showing faith in the wisdom, investors resorted to value buying in select scrips.

Some of the stocks became attractive for the investors after healthy corrections in their counters. Zen Technology was locked in five per cent circuit after the scrip had shed almost 20 per cent from the high.

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Jupiter Wagons rolled firmly on the equity rails. The stock was higher by over 17 per cent. The Kolkata-based multi-sector player with exposure to railways, defence, and EV had reported a good set of numbers in the quarterly results a few days ago.

Among the largecaps, Hero Moto Corps extended the gains after reporting a good set of numbers in the quarterly results. But most of the stocks were seen in the sideways mode.

While Nifty has regained the 22k level, the market participants are watching this level. They note that the markets will remain choppy for the next three weeks at least. The global cues may not be guarantee for the directions in the Indian markets, affirm the market participants.

It is also worthwhile to note that share prices of companies who have reported better quarterly results are not wilting under the impact of choppy waters of the equity market. Tejas Networks again extended gains on Friday.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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