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At 10.30am, the Sensex was at 28,267, higher by 59 points and the Nifty has managed to hold the 8,400 mark and was at 8,541, up 19 points.
However, the focus has seemingly shifted to the non-index space. The broader markets are outperforming their largecap peers; the midcap index has gained 0.6% at 11,028 and the smallcap index has zoomed by 0.8% at 11,524. And select pockets such as Oil marketing companies and aviation are reaping the benefits of plummeting oil prices, on the bourses.
The Nifty, according to technical chartists, is holding its position well above its 200 DMA. "Going forward, it has to hold above 8,520 to continue the upmove towards 8,550 and 8,635 zones. However, if it fails to hold 8480 levels, then bears may over power the bull and propel the index to drift towards 8,420 then 8,380 levels. Traders should remain cautious ahead of the upcoming quarterly result season," points out a morning note from Anand Rathi research.
CRUDE
crude oil prices plunged 6% to trade near 2-month lows on Monday, amid Chinese crisis and Greece debt crisis. The apparent movement in Iran's nuclear negotiations and new focus this weekend on China's stock market collapse also contributed to the fall. Brent crude traded at $57.07 a barrel on Tuesday, following the fall in the previous session.
LEADERS AND LAGGARDS
All the sectoral indices are in the green this morning, Coal India, Wipro, Tata Steel and SBI emerging as the leading gainers among index heavyweights.
Oil marketing companies, including HPCL and IOC have rallied further by upto 1% each as the weak crude price are expected to aid their margins. BPCL has, however, reversed its early gains and is now trading flat.
Aviation stocks are off to a flier this mmorning as they stand to gain the most from a correction in oil prices, with crude accounting for more than 50% of their operating costs. Jet Airways has jumped by 5% at Rs 325 and SpiceJet has gained 2.5% to Rs 20.
Meanwhile, the metal counters have bounced back from their 52-week lows, with Coal India, Tata Steel and NMDC gaining about 1% each.
On the other hand, NTPC, Hindustan Unilever and Hindalco have shed around 1% each. each.
The market breadth is strong. Out of 2198 stocks traded on the BSE, there are 1612 advancing stcoks as against 510 declines.
