A morning walk down Dalal Street | Rally can extend for next couple of sessions with immediate resistance at 11,350

Good news for investors as Sensex snapped 5-days losing streak on Tuesday.

The index closed nearly 350 points higher while Nifty50 reclaimed 11,000 levels. A large part of the recovery was led by financials such as banks, NBFCs as well as FMCG stocks. On the other hand, realty, telecom, oil & gas stocks saw profit booking.

The recovery came after Life Insurance Corporation assured that it would do all it can to prevent the collapse of beleaguered IL&FS which led to marked improvement in the sentiment. Also, Reuters in a report said that RBI may look at cutting Cash Reserve Ratio (CRR) or open a separate line of credit for mutual funds which helped markets recover early losses.

Technically, Nifty formed a bullish candle on charts and experts feel that the rally could extend for next couple of sessions.

Two crucial factors will be watched: one is crude oil prices which is hovering around $82/bbl, as well as the outcome of the US Fed policy meeting on Wednesday, will be in focus.

The initial target could extend towards 11170 – 11250 levels. Next immediate resistance is 11,350. Crucial support is placed at 10,866.