MUMBAI: Stocks extended gains for the second consecutive session on Tuesday as global markets found some relief in the US plan to get rid of the bad assets in the banking sector, which sparked hopes for stability in the financial system.

The Obama administration unveiled its plan to remove toxic assets from the books of the nation’s banks, betting that it can revive the US financial system without resorting to outright nationalisation.

Asian stocks also extended a rally that drove the MSCI World Index to a five-week high, on optimism the US Treasury’s plan to remove banks’ toxic assets will revive economic growth.

Back home, the upmove gathered momentum bolstered by strong gains in banking stocks. Realty and capital goods also attracted investor interest. However, the defensive FMCG and healthcare stocks were out of investors’ radar.

“The next crucial hurdle for the Sensex is placed at 9724, which if crossed decisively the bias would continue to remain positive. However, the Sensex rise from the current low of 8047 is forming a ‘zigzag’ pattern. In case of continuation of an uptrend the current uptrend could move up to 9714. However, couple of resistances exists at 9563-9714 (Nifty 2981-3010) levels; Sensex movement at these resistances would be crucial — book profit at these resistances and wait for Sensex to react.,” advised Religare Securities in a note.

At 10:45 am, Bombay Stock Exchange’s Sensex climbed 2.22 per cent or 209.24 points to a high of 9,633.26 after opening at 9,549.52.

National Stock Exchange’s Nifty managed to surpass the 3000 mark. The index was trading at 3000.50, up 2 cent or 60.6 points.

Gains in HDFC Bank (7.32%), ICICI Bank (6.91%), Suzlon Energy (6.91%), DLF (6.6%) and Punjab National Bank (4.8%) helped lift the Nifty higher.

Losers comprised ONGC (-1.33%), Hindustan Unilever (-0.84%), NTPC (-0.6%), Hindalco Industries (-0.29%) and ITC (-0.23%).

Secondline stocks too played catch-up. BSE Midcap Index was up 1.84 per cent and BSE Smallcap Index climbed 1.21 per cent.

Market breadth on BSE was extremely positive with 1192 advances against 475 declines.

source: Economictimes

Tags: calls, daytrading, free calls, intraday, tips

Similar Posts:

• Nifty closes near 4350; realty, auto, banks up
• Rally continues unabated; RIL, DLF lead
• Stocks fall sharply; Realty, banks badly hit
• Nifty scores above 3300; realty up 4%
• Sensex reclaims 12000; metals, banks lead