Indian markets remained volatile through Tuesday’s trading session owing to the derivatives expiry due on Thursday. Typically, markets experience a high degree of volatility preceding the date of the F&O expiry, which takes place on the last Thursday of the month.
The BSE Sensex ended the day up by 204 points at 17,257.
It touched a day’s high of 17,366, up 1.8 per cent from its previous close. It touched a day’s low of 17,061. The NSE Nifty ended the day at 5,243, up 58 points. It touched a day’s high of 5,277, also up 1.8 per cent from its previous close. The day’s low for the Nifty was at 5,184.
“After yesterday’s decline, a bounceback was expected. Positive global cues helped in strengthening the sentiments. We are recommending long positions with a support of 5,150 (for the Nifty). From this point, a run-up of around 18-20 points is expected,” said Ms Shanu Goel, Senior Research Analyst, Bonanza Portfolio.
IT stocks’ counters attracted buying interest on Tuesday, said analysts as the US economy looks poised for recovery with the Federal Reserve making statements regarding policy-easing measures as well as injection of liquidity into the system.
The global markets following these statements ended the day up. Asian markets ended Tuesday’s trading session by around two per cent. European markets, which are currently open for Tuesday’s trade, were trading up in the 0.5-1 per cent range. The US markets, which are yet to open, closed by more than one per cent on Monday.
Consumer durables, FMCG and realty sector stocks were up more than 1.2 per cent. Among the Sensex 30 stocks, DLF, Cipla, Sterlite Industries, HUL and Bharti Airtel were up by 3 per cent and above.
The rupee was down 0.6 per cent to Rs. 50.7 to the dollar.