Rally was triggered across emerging markets after Dollar index broke down sharply post US government’s partial shutdown, which brought strength across emerging currencies. Talks of a postponement of QE tapering were running high on back of US government's partial shutdown as it could lead to slower economic growth. Nifty futures opened sharply above 200DMA & continued to witness buying through the day closing at day’s high. Nifty futures premium opened at 45 points & expanded to 60 points by close. All beta names rallied sharply lead by Banks. Bank Nifty broke above 20 & 50 DMA today. Consumers witnessed selling while Pharma underperformed. INR recovered to 50DMA three days back from where it again started sliding (appreciating).Despite stronger INR, BSE IT finally broke out after hovering near its 20DMA since two weeks. Buying started percolating to side markets although pace was not very sharp yet. Advance – Decline spiked to the high of 3 times, from where cooled off to 1.9 times, there by closing at strongest level in two weeks. Metals rallied on stronger Chinese data. Bajaj Auto broke to six month’s high on strong volume growth. Volumes, although better than Monday, were running much lower than average in today’s rally.
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