Ambareesh Baliga, vice president at Karvy Stock Broking said, It was basically huge short covering during the final hours of trading. Benchmark indices are likely to remain unstable in the coming days, due to lack of any trigger from the domestic as well as international front. On the last day of the expiry of derivatives, rollover of Nifty positions from July 2009 contracts to August 2009 contracts were about 60%, said an analyst from a leading broking house. Meanwhile, inflation stood at -1.54% for the week ended July 18 compared to -1.17% for the previous week.
Benchmark indices opened the day on a flat note and traded in red till the first half of the trading session. However positive cues from Asian and European markets led the recovery and some buying during the final hours of the trading was seen in the banking and technology stocks. Markets will be looking at international markets for the direction in the coming days and we see Nifty trading at the range of 4,550-4,600 points, added Baliga. Barring metal, power and oil & gas all the sectors in the BSE sectoral indices closed the day on the positive terrain.
The breadth of the market remained strong as out of 2,758 stocks traded on BSE, 1,503 stocks advanced, 1,170 stocks declined while remaining 85 stocks remained unchanged.
In Sensex, 23 stocks closed in green while remaining seven stocks closed the day in red. As per provisional figures provided by BSE, foreign institutional investors (FII) were net buyers at Rs 366.81 crore, while domestic institutional investors (DII) were net sellers at Rs 286.67 crore.
Commenting on the mixed performance, an analyst from a leading broking house said, Despite markets closing in green, volumes at both the exchanges were not impressive. Markets are likely to remain weak in the coming days.