CNX Nifty and S&P BSE Sensex are likely to open gap up on the back of attractive valuations, strong quarterly numbers and expectation of further short coverings.
Chandan Taparia, analyst, technicals and derivatives, Anand Rathi Financial Services, says, "Markets are in oversold region so we can expect gap up opening today."
Prakash Diwan, director, Altamount Capital Management seconds Taparia and says, "We may see gap up opening today on account of likely short covering in cyclical and metal stocks. There are chances that Nifty can surge further 100 points in today's trading session."
On Tuesday, the CNX Nifty index on the National Stock Exchange gained 71.80 points, or 0.87 per cent, and ended the day at 8,285.60.
On April 28, the Nifty put-call ratio was at 0.78. As per market experts, in the past one month whenever put-call ratio falls below 0.8 the market considered as oversold. Put-call Ratio is an indicator of investor sentiment in the markets.
For today's market session, Taparia says, "The BSE Sensex and CNX Nifty can touch 27,500 and 8,340 levels, respectively." On April 28, the BSE Sensex closed the day at 27,396.
Asian peer markets, Nikkei 225 was up by 0.38 per cent while Hang Seng and Shanghai were down by 0.46 per cent and 1 per cent, respectively.