Nifty’s next resistance is at 5,100
 

The market closed in the positive on easing of the debt problems in Europe. An appreciation in the rupee also supported the upmove. Yesterday we had mentioned that if the Nifty manages to close above 5,020, we may see the index reaching the level of 5,200. Today the Nifty closed well above this level. The benchmark has to firmly close above 5,100 for the upmove to continue. The National Stock Exchange (NSE) saw a volume of 64.92 crore shares.

The market continued its upmove for the successive fourth day as it opened in the positive on firm cues from the global arena. US markets closed higher overnight as European leaders were looking a ways to help Spain deal with its troubled banks and comments from the Federal Reserve that economic growth has improved in the last two months. This optimism also supported Asian markets this morning, which were mostly in the green in morning trade.

The Nifty opened at 5,035, up 38 points over its previous close, and the Sensex surged 124 points to resume trade at 16,578. While select buying in the morning session helped the indices to move northwards, choppy trade capped the gains.

The rupee appreciated by 18 paise to 55.18 against the US dollar in early trade following a rising trend in the equity market and dollar selling by exporters and banks. On Wednesday, the rupee had gained 28 paise to close at a one-week high of 55.36 against the dollar.

The market fell to its intraday low in late morning trade. At this point the Nifty went back to 5,008 and the Sensex touched 16,520. However, buying in blue chips and a positive trend in the European markets pushed the local market higher in the noon session.

Sectors like banking, realty, metal and auto, which saw good buying interest in post-noon trade, pushed the benchmarks higher. The push enabled the benchmarks hit their intraday highs towards the end of the trading session. At the highs the Nifty rose to 5,060 and the Sensex scaled 16,681.

The market closed marginally off the lows. The Nifty gained 58 points to 5,055 and the Sensex settled at 16,649, up 195 points.

Markets across Asia closed mostly higher on hopes that European leaders would find ways to help Spain to infuse additional liquidity into its banks. Besides, comments from Federal Reserve vice chairman Janet Yellen that the lacklustre growth in the job market and flagging stock markets may lead to additional stimulus to spur growth.

The Hang Seng advanced 0.85%; the KLSE Composite rose 0.37%; the Nikkei 225 surged 1.24%; the KOPSI Composite jumped 2.56% and the Taiwan Weighted gained 0.34%. Among the losers, the Shanghai Composite declined 0.71%; the Jakarta Composite shed 0.02% and the Straits Times settled 0.06% lower.

At the time of writing, the key European markets were trading with gains of 0.37% to 0.67% while the US stock futures were mixed.

Back home, institutional investors—foreign and domestic—were net buyers in the equities segment on Wednesday. While foreign institutional investors pumped in Rs269.21 crore, domestic institutional investors infused 489.14 crore.