The Indian stock market advanced for fifth straight day mirroring gains in global counterparts to post decent rise, shrugging off a steep 50bp hike in CRR announced by the RBI. Both the benchmark indices, Sensex and Nifty, ended with a gain of 1.6%. The BSE Midcap and BSE Smallcap were the show stealers as they outperformed the benchmark indices gaining 2.2% and 2.6% respectively. Metal shares staged a strong comeback after the recent correction. Banking shares rose taking the hike in CRR in their stride. However, IT pivotals retracted from day’s high hit in early trade on profit booking. Among the frontliners, Bharti Airtel, Ranbaxy, REL Com, Jaiprakash Associates and Tata Steel gained 4-8.5%, while TCS, ITC, Wipro, Infosys and Satyam lost ground by 1-2%. In the mid-cap segment, Mercator Lines, Biocon, Adhunik Metal, Praj Industries and Dsh TV gained 11.5-17%, whereas Mindtree, Infotech Enterprise, Onmobile, TV 18 and Orchid Chem lost 4-11%.

The trend deciding leve l for the day is 4944 / 16483 .NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally upto 4999 / 16569 . However, if NIFTY trades below 4944 / 16483 for the first half-an-hour of trade then it may correct upto 4904 - 4849 /16395 – 16310. Read More.