After witnessing a huge sell off last week, the markets rebounded and closed higher on the back positive global and domestic cues. Nifty closed at 5842 and Sensex lost at 19395. The next immediate target for Nifty will be at 5915 (50 DMA), movements above can take Nifty towards 6000 plus in the near term. Nifty has support at 5802 and 5775. Last week, SEBI tightened norms regarding share buybacks in order to avoid mis-use in stock re-purchase. The capital market regulator mandated companies to purchase at least 50 per cent of their offer size. Failing to do this may cause a penalty of 2.5 per cent of the amount allotted for buy backs.

SEBI also mandated the companies opting for buy back to create an Escrow account to keep at least 25 per cent of the amount allocated for re-purchase and to complete the share purchase offer within six months. Earlier, the mandated minimum buy back quantity was 25 per cent of the offer size and the period was fixed to 12 months. Also, the new norm mandated that the company can't raise further capital for one year against the period of six months.