Wall street and Nifty make a strong comeback. Know how

Stocks bounced back and how. The Bulls hit back with FULL force!

The Nifty is likely to enjoy a strong comeback on Thursday after equities across the world shot up in trade on expectations that the recent sharp downturn was overdone and excessive froth was out of the system.

Traders will also grapple with the monthly expiry of futures and options contracts today, which will also prompt the short-sellers to buy back their open positions. These trades will add to the upswing. Meanwhile, the SGX Nifty is pointing to a 58-point gap up opening for Nifty futures at the start of trade today and strong gains are seen in Asian stock markets such as Japan, Hong Kong and China.

Meanwhile, Wall Street came back in style. Technology shares led major US indices to surge between 3.9-4.2 percent as investors judged the recent 6-day fall on the S&P 500 as overdone. The 11 percent cut on the world's most tracked index -- S&P 500 -- was the worst in four years. US markets recorded a turnover of 10.2 billion shares, 55 percent higher than the 3-month average -- indicating that the bounce back had wider participation and was on a strong footing.

Sentiment on Wall Street took a fillip after a senior official at the US Federal Reserve said the present economic turmoil across the world reduced the case for a rise in interest rates in September.

Major commodity indexes were mixed, although they showed no signs of a sharp movement either way. Crude Oil futures bounced up 2.4 percent from 6-1/2 year lows. Small scale buying continued to be seen in Gold and Silver futures.

Meanwhile, the Nifty Index fell 89 points to 7,791. Support is pictured in the 7,576-7,476-point band while resistance is seen at 8,430. The Bank Nifty fell 275 points to close at 16,918 as the sector's woes continued to weigh on stock prices.

The Cash markets presented a mixed picture. Foreign Institutional Investors were net sellers for the 7th day. They sold a net 2,346 crore rupees worth of local shares versus 1,881 crore rupees worth of net purchases made by domestic institutional investors.

Bears showed signs of easing their grip on the derivatives space. Traders were net sellers of 89 crore rupees for Index Futures; Net purchases of 243 crore rupees for Stock Futures; Net sales of 848 crore rupees for Index options and net sales of 22 crore rupees for Stock Options.

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Image credit: Indiatimes