Markets opened in the green on back of positve cues from Asia and rally in realty and IT stocks. The Sensex surged 154 points, at 19,036 and the Nifty was up 5697, up 40 points
Technical analysts expect markets to move higher after opening firm. Prakash Gaba said, "technically the market is still down but the set-up is such that an up move is a possibility, hence aggressive traders can go long with a stop loss below 5600 for a target of around 5750." Ravi Natahni added," ear term correction seems arrested, best strategy would be buy on dips without stoploss below 5638 as markets are expected to bounce around 100 points."
Other markets in Asia were trading mostly in the green.Hong Kong's Heng Seng was trading at 24,366, up 210 points led by chinese metal producer Chalco on expectations of strong earnings and rally in local property developers. Japan's Nikkei Stock Average was up 31 points, at 10,533. South Korea's Kospi Composite was trading flat at 2,104, up 5 points.
China's Shanghai Composite was down 15 points, at 2,692 on reports of China's gross domestic product up by 10.1% and the government may cut banks lending for 2011.
Back in India IT outsourcers rallied, Tata Consultancy Services was up 3.9% in opening trades after third quarter profits beat analysts forecasts with a 30% rise in net profit. Other rivals Wipro surged 3% and HCL Technologies gained 1.6%. Infosys was trading flat at Rs 3721 on reports that Tax authorities have asked the software majaor to pay Rs 400 cr on onshore sales.
Realty shares were on firm ground. Indiabulls Real Estate rose 4% after the company got an okay nod for debt recasting. Phoenix Mills gained 2.2% and HDIL was up 1%.
Investors also cashed in on banks, Axis Bank advanced 5.4% after it reported 36% jump in profit on surge in net interest income and fee income, Indusind Bank climbed 2.4% and Yes Bank was up 2%.
Among other individual shares Hindustan Construction dipped 5% on reports that environment Ministry has found violations in the Lavasa project.
Top gainers on the Sensex were TCS, Wipro and Cipla (up 1.9%). Only 3 shares were trading in the red, Hero Honda fell 1.2%, ONGC was off 0.6% and Larsen and Tourbo dipped 0.3%.
Broader markets were trading strong, the midcap and smallcap indices were up 0.9% each.