A morning walk down Dalal Street | For bulls to take charge, Nifty must close above 11,300
Nifty snapped 9-day losing streak on May 14 and reclaimed 11,200. However, for bulls to regain control, the index has to close above 11,250-11,300 convincingly else selling pressure could continue.
The final tally – the S&P BSE Sensex rose 227 points to 37,318 while the Nifty closed 73 points higher at 11,222.
On the sectoral front, the BSE Telecom index rose 2.8 percent, followed by the BSE Energy index (up 1.6 percent), and BSE Capital Goods index (up 1.4 percent). On the losing front, IT stocks came under pressure.
The rally was largely on the back of short-covering and investors should not confuse the move with strength in the index. Every bounceback will be used to book profits, experts said.