Nifty closes above 5600 for 1st time since July 25, 2011

The Nifty closed nearly at seven-month high, reacting to the approval for Greek’s second debt deal. However, global markets remained flat as they seemed have factored in the same news yesterday.

Oil & gas, telecom, banks and capital goods stocks supported the NSE benchmark to close above the 5600 level for the first time since July 25, 2011. It gained 42.85 points or 0.77% at 5,607.15. Meanwhile, the BSE benchmark Sensex rose 139.26 points or 0.76%, to end at 18,428.61.  

Technical analyst Sudarshan Sukhani of s2analytics.com advised keeping long positions. “If traders don’t have it then even now they can go and take it,” he added.

Euro zone finance ministers approved a second bailout package for Greece. It will resolve its immediate financing needs with a 130-billion-euro rescue package. This deal also aims to cut country’s debt to 121% of GDP by 2020.

Back home, index heavyweights and oil & gas majors Reliance Industries and ONGC rallied 3% & 3.7%, respectively.

Telecom stocks like Bharti Airtel and Reliance Communications rose 3%. Among banks, SBI and ICICI Bank climbed 1-1.5%; HDFC Bank went up 0.67%.

Capital goods major BHEL retained its top position in the buying list for the whole session, rising 4.8%. However, L&T fell 0.4%.

In the metal space, Tata Steel and Hindalco moved up nearly 3% while Sterlite Industries tanked 3.5% post sources claimed that Vedanta is looking to merge Sterlite and Sesa Goa.

Technology stocks like Infosys and Wipro declined 0.5% & 1.5%, respectively; while TCS gained 0.4%.

The broader markets outperformed benchmarks – the BSE Midcap Index was up 0.9% and Smallcap up 1.2%.