Sensex near 20000 and Nifty nears 6000 mark on FIIs buying spree

[Zebronic]

MUMBAI: The bull-run powered by uninterrupted inflows from foreign institutional investors took the benchmarks to psychological resistance levels towards the close of session. According to analysts, indices are set to hit higher levels in coming days riding on strong liquidity in the market.

“Due to uncertainty in developed markets a lot of investors’ money is moving in developing market in Asian region. Hence most Asian markets are moving higher,” said Anand Rathi, chairman, Anand Rathi Financial Services to ET Now.

Indices opened on a positive note despite subdued Asian peers and gained momentum led by FMCG, realty and auto stocks. Positive European markets also boosted sentiments.

National Stock Exchange’s Nifty ended at 5980.45, up 95.50 points or 1.62 per cent. The broader index touched intra-day high of 5989.50 and low of 5885.05.

Meanwhile, the October and November Nifty futures have crossed the 6000 mark and the Nifty is likely to achieve the psychological level soon.

Bombay Stock Exchange’s Sensex ended at 19906.10, up 311.35 points or 1.59 per cent. It hit a high of 19927.30 and low of 19445.42 in today’s trade.

BSE Midcap Index was up 0.66 per cent and BSE Smallcap Index moved 0.74 per cent higher.

“Statistically Nifty futures candle stick count is highest ever in the past 5 years. It clearly suggests that we are in an overbought zone and may see some profit booking. However any such dips around 5850-5800 levels should be a good buying opportunity,” said Savio Shetty, technical analyst, Prabhudas Lilladher.

BSE FMCG Index advanced 3.50 per cent, BSE Realty Index moved 1.73 per cent higher and BSE Auto Index added 1.31 per cent.

ITC (5.55%), Reliance Communications (5.25%), BPCL (4.83%), Hero Honda (4.50%) and Hindustan Unilever (4.33%) were amongst the top Nifty gainers.

Sterlite Industries (-0.84%), Idea Cellular (-0.71%), Ranbaxy Laboratories (-0.37%), NTPC (-0.22%) and BHEL (-0.19%) resisted the upmove.

Market breadth was positive on the BSE with 806 gainers against 537 losers.

The European markets were rallying ahead of US Federal Reserve meet and the US stock futures also indicated a positive start. At 4:50 pm IST, Dow Jones futures was up 0.37 per cent, S&P 500 gained 0.53 per cent and Nasdaq gained 0.45 per cent.

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[Zebronic]

Waiting for tomorrow i think sensex will reach 20000 and nifty to 6000 tomorrow......rupee is also 3 month high also....

 

[Zebronic]

Diwali Bonanza! Sensex may surpass 21K mark by October: Analysts

MUMBAI: Sensex may surpass the much-awaited 21,000-mark before the festival of Diwali, driven by the strong FII interest, analysts said.

Stock market benchmark Sensex, which had touched the 21,000-milestone on January 8, 2008, today breached the psychological high-level of 20,000 in the early trade.

This was the first time the Bombay Stock Exchange (BSE) index climbed the 20,000- level since January 15, 2008, when it had closed at 20,251 points.

"Sensex may surpass 21,000 level before Diwali with the increasing FII interest. A lot of retail and institutional investors are waiting on the sidelines to park their money in the market, which means a lot of liquidity is yet to come in the market," Geojit BNP Paribas Research Head Alex Mathews said.

Echoing a similar opinion, Kotak Mahindra Old Mutual Life Insurance Chief Investment Officer Sudhakar Shanbhag said,"The rate at which our market is rallying, surpassing the record level would not be a difficult task."

The 30-share barometer of the BSE ended the month of August at 17,971.12. Since then it has rallied by 2,117 points in the last 15-trading days.

"This is a landmark achievement. The market and investors may see a good Diwali gift this season as the Sensex is likely to surpass the 21,000-mark. The fundamentals are strong, led by good growth rate and strong IIP data," Ashika Brokers Research Head Paras Bothra said.

The industrial output, as measured by the index of industrial production or IIP, surged 13.8 per cent in July, accelerating from a revised 5.76 per cent growth registered in June.

Market analysts attributed the ongoing rally to the strong FII participation in the market. As per the Securities and Exchange Board of India data, foreign funds have invested Rs 12,442 crore (USD 2.67 billion) in the Indian stock market in this month alone.

"The rally is driven by huge liquidity being pumped into the domestic market by the foreign investors. This is the beginning of a big move where the market may see the Sensex crossing the magical 21,000-mark, but investors should be cautious before any fresh investment," another broker said.

Report from a brokerage firm said the Indian equities were in a structural bull run with the Indian economy structurally well placed for an 8-9 per cent GDP growth over the long period.

Stock markets have been rising throughout September, on the back of unabated inflows from the overseas funds, coupled with the firming global markets.

"If everything will be fine overseas, I do not see any hurdle for the Sensex to hit its all-time high in the coming days," Sharekhan Fund Manage Suhas Samant said.

However, experts cautioned the stock markets were in overbought zone, which may create volatility in the coming times.

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[Markus]

Lets hope BSE conquers 21 K

 

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time t keep ur money in ur pockets and wait till the next market correction before reinvesting ....

 

[Markus]

time t keep ur money in ur pockets and wait till the next market correction before reinvesting ....

But if you are already invested then its time for profit booking.

 

[syntax_error]

exactly what meant ... now if ur invested u make some profit ..
but if ur planning to invest .. wait for the correction ...
one is due i believe ...