After remaining rangebound in the month of February, BSE Sensex finally bounced back with gains of over 150 points in intraday trade on Wednesday; but, failed to close around its day's high.
The S&P BSE Sensex finally ended 85 points higher at 20,448. It hit a low of 20427.23 and a high of 20,516.60 in trade today.
According to analysts the bounce back seen in markets was largely on account of positive global cues. Data from China lend a helping hand to after Chinese exports and imports data handily beat expectations in January.
Overnight US stocks rallied after Congress agreed to advance legislation extending US borrowing authority and the Federal Reserve's new chief pledged to keep interest rates at ultra-low levels for longer.
However, back home analysts still advise investors to remain cautious as it is too early to stay that the uptrend will resume in markets considering the fact that elections are still 4 months away fears of further tapering is likely to weigh on markets, say experts.
However, any substantial dips can be used by analysts to accumulate stocks or buy quality names at cheaper levels, they say.
"If you look at the pattern, whether the bulls are back in the town is too early to talk about, but they are just following the global trend," says Rahul Shah, AVP, Group Leader-Equity Advisory Group, Motilal Oswal Financial Services Ltd in an interview with ET Now.
"If you look at all the global markets, we are just following the trend where they have been negative a couple of weeks back and we have followed them and again it is the same thing. It is difficult to say that the bulls are back or not, but if the Nifty closes above 6110, which is a precise level, that would give a good indication for it going to the 6200 levels from here," he added.
Shah is of the view that the Nifty is going to remain in the range of 6000 to 6200, unless we have more positive news on the global front.
Not just Shah, Ankit Agarwal, Vice President-Fund Manager of Centrum Broking Ltd is of the view that till the election period, the markets may move in a tight range governed by macros globally, like the events unfolding in the emerging markets and how the QE tapering takes off over the next two-three months.
"So global events by and large, will drive the markets and they may continue to remain in a tight range and the volatility in the markets may stay till the elections are over," he added.
Agarwal is of the view that any significant dip in the market could be used as a buying opportunity as we see probable upsides post the elections are over
Analysts are of the view that if the market is in a serious uptrend it will not close at the lows of the day and that defines the momentum, the trend, and looking by the market movement it still remains a very patchy rally.
"The message is that the market is finding it extremely difficult to move up and the only reason for that is whatever the good news come in, the institutions are not coming in heavily particularly foreign institutions or FIIs," says Ashwani Gujral of ashwanigujral.com.
Foreign institutional investors (FIIs) which have been the backbone for India markets in the year 2013 but off late concerns over slowdown in China and further tapering by the US Federal Reserve has led to selling not just in emerging markets but in EM currencies as well. They have pulled out nearly Rs 1,700 cr from Indian equities in the first week of February.
"Unless big money comes in and you do not get those 100-150 point Nifty moves, I mean on this sort of momentum we are just waiting for something to go wrong and we will out perform on the downside," added Gujral.
Gujral is of the view that we will lose these gains maybe in a couple of days so you could be moving up for 10 days but the move is so weak that it is very easy to come down from here.
"Without the bedrock of strong buying so play it for a short term, play it with stocks which are in their own bull market like Motherson Sumi, etc, but I would not trust the index on the upside too much," he concludes.
The S&P BSE Sensex finally ended 85 points higher at 20,448. It hit a low of 20427.23 and a high of 20,516.60 in trade today.
According to analysts the bounce back seen in markets was largely on account of positive global cues. Data from China lend a helping hand to after Chinese exports and imports data handily beat expectations in January.
Overnight US stocks rallied after Congress agreed to advance legislation extending US borrowing authority and the Federal Reserve's new chief pledged to keep interest rates at ultra-low levels for longer.
However, back home analysts still advise investors to remain cautious as it is too early to stay that the uptrend will resume in markets considering the fact that elections are still 4 months away fears of further tapering is likely to weigh on markets, say experts.
However, any substantial dips can be used by analysts to accumulate stocks or buy quality names at cheaper levels, they say.
"If you look at the pattern, whether the bulls are back in the town is too early to talk about, but they are just following the global trend," says Rahul Shah, AVP, Group Leader-Equity Advisory Group, Motilal Oswal Financial Services Ltd in an interview with ET Now.
"If you look at all the global markets, we are just following the trend where they have been negative a couple of weeks back and we have followed them and again it is the same thing. It is difficult to say that the bulls are back or not, but if the Nifty closes above 6110, which is a precise level, that would give a good indication for it going to the 6200 levels from here," he added.
Shah is of the view that the Nifty is going to remain in the range of 6000 to 6200, unless we have more positive news on the global front.
Not just Shah, Ankit Agarwal, Vice President-Fund Manager of Centrum Broking Ltd is of the view that till the election period, the markets may move in a tight range governed by macros globally, like the events unfolding in the emerging markets and how the QE tapering takes off over the next two-three months.
"So global events by and large, will drive the markets and they may continue to remain in a tight range and the volatility in the markets may stay till the elections are over," he added.
Agarwal is of the view that any significant dip in the market could be used as a buying opportunity as we see probable upsides post the elections are over
Analysts are of the view that if the market is in a serious uptrend it will not close at the lows of the day and that defines the momentum, the trend, and looking by the market movement it still remains a very patchy rally.
"The message is that the market is finding it extremely difficult to move up and the only reason for that is whatever the good news come in, the institutions are not coming in heavily particularly foreign institutions or FIIs," says Ashwani Gujral of ashwanigujral.com.
Foreign institutional investors (FIIs) which have been the backbone for India markets in the year 2013 but off late concerns over slowdown in China and further tapering by the US Federal Reserve has led to selling not just in emerging markets but in EM currencies as well. They have pulled out nearly Rs 1,700 cr from Indian equities in the first week of February.
"Unless big money comes in and you do not get those 100-150 point Nifty moves, I mean on this sort of momentum we are just waiting for something to go wrong and we will out perform on the downside," added Gujral.
Gujral is of the view that we will lose these gains maybe in a couple of days so you could be moving up for 10 days but the move is so weak that it is very easy to come down from here.
"Without the bedrock of strong buying so play it for a short term, play it with stocks which are in their own bull market like Motherson Sumi, etc, but I would not trust the index on the upside too much," he concludes.