WERE TODAY'S INDEX GAINERS
SENSEX 18428.61
+139.26
NIFTY 5607.15
+42.85
USD/INR 0049.32 +00.18
UPDATEDTIME 09.28 PM 21 FEBRUARY 2012
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The National Stock Exchange's Nifty
pared some of the intraday gains but closed above psychological level of 5600
even as the European markets witnessed a subdued session. All the sectoral
indices, barring the IT space, ended in the positive terrain with realty,
oil&gas and power stocks leading the upmove.
The Indian markets opened in the green after an extended weekend and moved higher after agreement on a second bailout for Greece worth 130 billion euros boosted sentiments.
Rate sensitive sectors continued to move higher hopes of rate cuts by the Reserve Bank of India at its meet on March 15, 2012.
According to analysts, the central bank may ease liquidity by cutting Cash Reserve Ratio but policy rates are likely to remain unchanged. There are concerns that rising crude oil prices, following tension in the Middle East between Iran-Israel, can stoke inflation which is showing signs of cooling down.
RBI's Deputy Governor Subir Gokarn has said the central bank will consider a further cut in CRR if the systemic liquidity conditions continue to be tight.
Experts of the view that market will now move consolidate with positive bias and take cues from outcome of assembly elections, Union Budget and RBI's policy meet for direction.
If the Congress does end up doing quite well (in the elections) then the markets will rally even before the budget. Of course, it all depends on what the RBI decides to do on March 15th. If they cut rates, it will be quite positive because that could bring the investment sentiment back and that could at least signal a clear further turn in the monetary cycle, which historically has been associated with good market performance.
The budget has a chance of being a positive trigger for the markets, but we will have to wait and see how it plays out. It is a significant event in March, and as I said, it holds lot of catalyst for the market which everyone is watching closely.
The Nifty resumed its uptrend on the back of foreign inflows and hit 7-month high. It retreated in the afternoon to close at 5607.75, up 42.85 points or 0.77 per cent. It touched a high of 5621.50 and low of 5561.75 in trade today.
The Bombay Stock Exchange's Sensex closed 18428.61, up 139.26 points or 0.76 per cent. It touched intraday high of 18470.86 and low of 18293.80.
"The market is slowing down in terms of momentum and may be it is a good idea to use some range trading strategies. It (the trend) remains strongly up but you would not have those 150 point days in a hurry now.
The Indian markets opened in the green after an extended weekend and moved higher after agreement on a second bailout for Greece worth 130 billion euros boosted sentiments.
Rate sensitive sectors continued to move higher hopes of rate cuts by the Reserve Bank of India at its meet on March 15, 2012.
According to analysts, the central bank may ease liquidity by cutting Cash Reserve Ratio but policy rates are likely to remain unchanged. There are concerns that rising crude oil prices, following tension in the Middle East between Iran-Israel, can stoke inflation which is showing signs of cooling down.
RBI's Deputy Governor Subir Gokarn has said the central bank will consider a further cut in CRR if the systemic liquidity conditions continue to be tight.
Experts of the view that market will now move consolidate with positive bias and take cues from outcome of assembly elections, Union Budget and RBI's policy meet for direction.
If the Congress does end up doing quite well (in the elections) then the markets will rally even before the budget. Of course, it all depends on what the RBI decides to do on March 15th. If they cut rates, it will be quite positive because that could bring the investment sentiment back and that could at least signal a clear further turn in the monetary cycle, which historically has been associated with good market performance.
The budget has a chance of being a positive trigger for the markets, but we will have to wait and see how it plays out. It is a significant event in March, and as I said, it holds lot of catalyst for the market which everyone is watching closely.
The Nifty resumed its uptrend on the back of foreign inflows and hit 7-month high. It retreated in the afternoon to close at 5607.75, up 42.85 points or 0.77 per cent. It touched a high of 5621.50 and low of 5561.75 in trade today.
The Bombay Stock Exchange's Sensex closed 18428.61, up 139.26 points or 0.76 per cent. It touched intraday high of 18470.86 and low of 18293.80.
"The market is slowing down in terms of momentum and may be it is a good idea to use some range trading strategies. It (the trend) remains strongly up but you would not have those 150 point days in a hurry now.
You could broadly keep a
range of about say around 5450 to about 5700 and chances are that we could get
a dip where you will get a good buying opportunity. Buying right now after many
up-days I do not think the risk reward is really favourable even on most individual
stocks. Though you are getting one or two breakouts, the number of breakouts is
reducing.
The market is looking to consolidate here and on dips will be a much better strategy from here on rather than hoping for the momentum to carry you forward.
BSE Midcap Index was up 0.91 per cent and BSE Smallcap Index moved 1.20 per cent higher.
Amongst the sectoral indices, BSE Realty Index gained 4.34 per cent, BSE Oil&gas Index moved 2.29 per cent higher, BSE Power Index advanced 0.97 per cent and BSE Capital Goods Index advanced 0.87 per cent. BSE IT Index slipped 0.16 per cent.
Imported power equipments for mega projects above 1000 MW are likely to attract 19 per cent import duty, say reports. This is likely to have positive impact on BHEL, L&T, BGR Energy etc.
BHEL (4.56%), ONGC (4.43%), Reliance Infrastructure (3.76%), Bharti Airtel (2.89%), Hindalco Industries(2.85%) and Reliance Industries (2.71%) were the major Nifty gainers.
Sterlite Industries (-3.61%), Tata Power (-2.99%), BPCL (-1.66%), Wipro (-1.41%) and NTPC (-1.28%) were amongst the losers.
Market breadth was positive on the NSE with 905 gainers against 614 losers.
Foreign institutional investors continued to remain buyers in the Indian markets. As per the provisional data, FIIs bought shares worth net Rs 536.49 crore on Friday. They bought shares worth Rs 12149.25 crore this month so far.
The market is looking to consolidate here and on dips will be a much better strategy from here on rather than hoping for the momentum to carry you forward.
BSE Midcap Index was up 0.91 per cent and BSE Smallcap Index moved 1.20 per cent higher.
Amongst the sectoral indices, BSE Realty Index gained 4.34 per cent, BSE Oil&gas Index moved 2.29 per cent higher, BSE Power Index advanced 0.97 per cent and BSE Capital Goods Index advanced 0.87 per cent. BSE IT Index slipped 0.16 per cent.
Imported power equipments for mega projects above 1000 MW are likely to attract 19 per cent import duty, say reports. This is likely to have positive impact on BHEL, L&T, BGR Energy etc.
BHEL (4.56%), ONGC (4.43%), Reliance Infrastructure (3.76%), Bharti Airtel (2.89%), Hindalco Industries(2.85%) and Reliance Industries (2.71%) were the major Nifty gainers.
Sterlite Industries (-3.61%), Tata Power (-2.99%), BPCL (-1.66%), Wipro (-1.41%) and NTPC (-1.28%) were amongst the losers.
Market breadth was positive on the NSE with 905 gainers against 614 losers.
Foreign institutional investors continued to remain buyers in the Indian markets. As per the provisional data, FIIs bought shares worth net Rs 536.49 crore on Friday. They bought shares worth Rs 12149.25 crore this month so far.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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