A morning walk down Dalal Street | Nifty to move up further if it sustains above 10,900

What a comeback from the bulls in the second half of the trading session on Monday.

The S&P BSE Sensex which was languishing near crucial support levels in the opening sessions saw massive recovery in the second half pushing the index higher by nearly 300 points towards the close of the trade.

The Nifty50 also managed to close above 11,000 mark. The large part of the recovery was led by financials, after the government plans to takeover IL&FS and contain the crisis from spreading.

The National Company Law Tribunal (NCLT) has approved the takeover of IL&FS board by government nominees. A new six-member board led by veteran banker Uday Kotak will take charge of the company. The other members are former SEBI chief GN Vajpai, ICICI Bank chairman GC Chaturvedi, Tech Mahindra's Vineet Nayyar, and former bureaucrats Malini Shankar and Nand Kishore.

The bounce seen on Monday has scope to stretch further going ahead. On the higher side, 11,100-11,150 shall be the key hurdle zone to watch out for. The short term downtrend remains intact and failure near 11,100-11,150 would set in the next leg down.

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