It was an event of a life time on D-Street today when the markets hit the upper circuit 2 times in a day. The positive sentiments prevailing among the investors community after the exciting win of Congress led UPA govt by getting almost close to the majority needed to form the Govt. And the biggest factor being that UPA now need not take the support of the left parties. The sentiments showed up in the markets as expected and posted here yesterday.

Sensex managed to open almost 10.73% up today at 9.55 AM which is about 1306 points at 13,479 points and nifty gained 532 points at 4203 levels. Within 20 seconds the markets were closed as it hit the 10% upper circuit. The market was to open again at 10.55 AM, but as nifty had hit 15% upper circuit, so it was decided to start at 11.55 AM. When the markets opened again at 11.55 AM the same sentiments were prevailing and it hit the circuit again within 15 seconds. Isn’t that amazing now! The trading was halted for the whole day after that.

The overall gain in sensex was 17.24% or 2099 points and it closed at 14273 levels and nifty gained 17.33 % or 636 points to close at 4308 points. The turnover in the markets was very less and it was of the tune of Rs 1000 Crores. 202 stocks were traded and 842 on sensex were traded in the whole 35 seconds of action which added 4 lakh crores to the investor’s wealth.

In the coming days nifty is expected to remain in the range of 3500 to 4500 levels. It is suggested not to go for short position in this market scenario. Remain long for some time. The next trigger would be the announcement of finance minister and the final 2009 budget. Analysts are of the view that 16,000 is possible in coming 3 months. But then 3 months is a long time from here in such situations. Long term investors would definitely get opportunity to enter when the rally would subside after dew days of time. Accumulate the large caps and the strong stocks.

Major gainers of the day include BHEL up 32%, L&T up by 30%, DLF up by 25.82%, ICICI up by 25%, HDFC up by 23%. These are time to go with finance, banking and capital good stocks. You can also check in selected IT companies. Hopefully tomorrow we will get a chance to trade in the markets. The US markets are now up by 1.85% in Dow and 1.42% in live trading currently. But now the local sentiments are going to play a major role for sometime now. So keep a close watch on it.

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