After trading range-bound for most part of the day, the markets registered strong gains by close with the benchmark index settling 255 points higher at 15,770 levels.
The Sensex slipped to a low of 15,445 levels in intra-day deals. In broader markets, the Nifty ended the day at 4,677 levels, up 91 points.
“Technically, Nifty futures have strong support between 4,480 - 5,000 levels, which is likely to hold on declines. If, however, this level is decisively broken, there is likely to be a fresh spate of selling which may take it down to 4,420 levels,” said a technical analyst with Religare Securities.
“It must close decisively above 4,820 to signal the end of the current downswing and above 4,925 levels for strength,” he added.
Leading the pack of gainers among the BSE 30 scrips was ONGC that continued to move up for the second consecutive session. The counter surged 7.5% or Rs66.
The spike in the counter comes on the back of customs and excise duty rejig on crude oil done by the government on 4 June.
According to the latest announcement, duty cuts and price adjustments will shave-off Rs440 billion from the total subsidy of Rs2,450 billion estimated for FY09. The subsidy shared by upstream companies like ONGC has reduced to 18% as compared to 33% in FY08.
Among other BSE 30 scrips, TCS, Wipro, NTPC, Hindustan Unilever, HDFC Bank, Reliance Infra, Jaiprakash Associates, and Satyam Computer logged smart gains.
Strength is also visible in technology scrips. NIIT Technologies (up 9.1%), Tech Mahindra (7.5%), Wipro (6.3%), Infosys Technologies (5.9%) and NIIT Limited (4.9%) were some of the key gainers.