SENSEX 15939.36 +421.44
NIFTY 4765.30
+128.55
USD/INR 0053.19 -00.11
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UPDATEDTIME 09.28 PM 02 JANUARY 2012
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The National Stock Exchange's Nifty extended pull-back rally and
closed above intermediate resistance levels led by gains in metals, capital
goods and realty space. According to analysts, this seems to be onset of
pre-budget rally and also as the market is anticipating some rate cut
announcements by the Reserve Bank of India.
However, they advise caution as it would be too premature to factor in any rate cuts by the RBI. They are of the opinion that the market fundamentals have not turned bullish as of now and the pull-back rally is likely to run out of steam at higher levels.
"It is possibly a pre-budget rally which I was expecting. I do not know whether it is playing out now or whether it is going to play out some other time.
We may have interest rates possibly being cut and some of these expectations will also provide some amount of fillip to the market. So possibly this could provide a 300-400 point rally. Whether we are underway I am not too sure on technical front but by and large I would still remain cautious beyond this. I would still remain wary and defensive.
The markets had opened in the positive territory and gained momentum on the back of encouraging Purchasing Managers' Index data in India and China. India's PMI rose to 54.2, the most in six months, from 51 in November. In China, the index was at 50.3 from 49 in November. This boosted commodity stocks like metals which have been facing tough time due to global economic slow-down.
The Sensex ended at 15939.36, up 421.44 points or 2.72 per cent. The 30-share index touched intraday low of 15640.56 and high of 15970.31.
The National Stock Exchange's Nifty closed at 4765.30, up 128.55 points or 2.77 per cent. The broader index touched a high of 4773.10 and low of 4675.80 in trade today.
"Let everybody who has short positions cover them. When you have a narrow range type of day, after a three-four day rally, that would be a good time to get back into shorts.
This is an up and down swinging market. Probably the up-swing will be a little smaller than the downswing. If downswing was 100 points upswing could be as big as 6570. Be careful and do not try to go short after just one day worth of pullback rally. Just let the pullback rally end and there will be opportunities on the short side.
BSE Midcap Index was up 2.42 per cent and BSE Smallcap Index moved 2.33 per cent higher.
Amongst the sectoral indices, BSE Metal Index rallied 5.05 per cent, BSE Capital Goods Index gained 4.40 per cent, BSE Bankex moved 4.35 per cent higher and BSE Realty Index advanced 4.28 per cent.
DLF (6.70%), Kotak Bank (6.28%), Tata Steel (5.73%), Axis Bank (5.67%) and BHEL (5.64%) were the major Nifty gainers.
Shares in DLF rallied on reports that China-based HNA has bid in excess of Rs 2000 crore to buy its non-core asset Amanresorts.
Mahindra & Mahindra (-1.65%), BPCL (-1.62%), Ambuja Cement (-0.93%) and Hero Moto Corp (-0.70%) were the major index losers.
Shares of oil marketing companies were under pressure after government did not allow them to raise petrol prices.
Market breadth was positive on the NSE with 1238 gainers against 237 losers
However, they advise caution as it would be too premature to factor in any rate cuts by the RBI. They are of the opinion that the market fundamentals have not turned bullish as of now and the pull-back rally is likely to run out of steam at higher levels.
"It is possibly a pre-budget rally which I was expecting. I do not know whether it is playing out now or whether it is going to play out some other time.
We may have interest rates possibly being cut and some of these expectations will also provide some amount of fillip to the market. So possibly this could provide a 300-400 point rally. Whether we are underway I am not too sure on technical front but by and large I would still remain cautious beyond this. I would still remain wary and defensive.
The markets had opened in the positive territory and gained momentum on the back of encouraging Purchasing Managers' Index data in India and China. India's PMI rose to 54.2, the most in six months, from 51 in November. In China, the index was at 50.3 from 49 in November. This boosted commodity stocks like metals which have been facing tough time due to global economic slow-down.
The Sensex ended at 15939.36, up 421.44 points or 2.72 per cent. The 30-share index touched intraday low of 15640.56 and high of 15970.31.
The National Stock Exchange's Nifty closed at 4765.30, up 128.55 points or 2.77 per cent. The broader index touched a high of 4773.10 and low of 4675.80 in trade today.
"Let everybody who has short positions cover them. When you have a narrow range type of day, after a three-four day rally, that would be a good time to get back into shorts.
This is an up and down swinging market. Probably the up-swing will be a little smaller than the downswing. If downswing was 100 points upswing could be as big as 6570. Be careful and do not try to go short after just one day worth of pullback rally. Just let the pullback rally end and there will be opportunities on the short side.
BSE Midcap Index was up 2.42 per cent and BSE Smallcap Index moved 2.33 per cent higher.
Amongst the sectoral indices, BSE Metal Index rallied 5.05 per cent, BSE Capital Goods Index gained 4.40 per cent, BSE Bankex moved 4.35 per cent higher and BSE Realty Index advanced 4.28 per cent.
DLF (6.70%), Kotak Bank (6.28%), Tata Steel (5.73%), Axis Bank (5.67%) and BHEL (5.64%) were the major Nifty gainers.
Shares in DLF rallied on reports that China-based HNA has bid in excess of Rs 2000 crore to buy its non-core asset Amanresorts.
Mahindra & Mahindra (-1.65%), BPCL (-1.62%), Ambuja Cement (-0.93%) and Hero Moto Corp (-0.70%) were the major index losers.
Shares of oil marketing companies were under pressure after government did not allow them to raise petrol prices.
Market breadth was positive on the NSE with 1238 gainers against 237 losers
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Group mail id: makin97NSEtips@yahoogroups.co.in
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