Going forward, the current technical pullback is likely to continue for some time with immediate target for the Nifty around 5300 levels. The parallel target for the Sensex is around 17700.
However, despite the Sensex and the Nifty gaining around 2.50 per cent each, the market breadth was marginally negative with an advance-decline ratio of 4:5 on BSE.
Cash volumes were at Rs 14,159 crore on the NSE as against a 5-day moving average volume of Rs 147,650 crore. The F&O volumes were low at Rs 33,832 crore as against a 5-day average of Rs 47,561 crore.
The Nifty May futures were trading at a premium of 10 points to spot for major part of the day, which increased to 15 points during the last half hour.
The Nifty May futures closed at 5125, up 2.5 per cent, while open interest increased by 11.3 per cent at the close of the trading session and 4.40 per cent after the close.
This indicates that fresh long position was built up intra-day while some short covering took place around the close of the day