If the Nifty is able to cross 5,950, a rally to 6,080 is possible. However, most likely, Nifty will take a dip even if it does rally
A stronger rupee and positive developments in regard to the Syrian crisis pushed the Indian market up on the back of rising foreign funds. The market now awaits the stance of Federal Reserve on trimming its monetary stimulus. The BSE 30-share Sensex rose 462.70 points (or 2.40%) to close the week at 19,732.76 while the National Stock Exchange (NSE) Nifty settled at 5,850.60, up 170 points (or 3%). The Reserve Bank of India (RBI) on Friday took an additional measure to bring in more foreign inflow by allowing non-residents to buy stocks of listed domestic companies through the foreign direct investment (FDI) route instead of earlier process to raise their stakes such as open market offers.
The Sensex rose for the fourth consecutive session on Tuesday recording the highest percentage gain since 27 May 2009. On Wednesday the market edged marginally higher with the news making round that US President Barack Obama has asked Congress to delay a vote on whether to authorize military strikes. On Thursday ahead of the data on consumer price index for urban and rural India for August 2013 and industrial production for July 2013 the market broke the trend of five days of upmove. On Friday the Sensex fell again. The Prime Minister's Economic Advisory Council (PMEAC) sharply trimmed India's GDP growth forecast to 5.3% for the year ending 31 March 2014 from earlier estimate of 6.4% and said that tight monetary policy by the RBI may be continued until stability in the rupee value is achieved.
Sensex and Nifty have moved sharply up from their recent lows about two weeks ago. The indices will either correct now by about 2%-3% or go on to target 6080 from where a deeper correction would take place
With the number of Americans seeking unemployment benefits plummeting last week, there is speculation that the Federal Reserve would begin trimming its monetary stimulus at the next week's meeting.
Among the other indices on the NSE, the top two gainers this week were Realty (9%) and Infrastructure (7%) while the only loser was IT Sector (1%).
Among the Nifty-50 stocks, the top five gainers were PNB (15%); D L F (14%); Axis Bank (11%); Larsen & Toubro (11%) and Tata Power (11%) while the top five losers were Cairn (4%); IndusInd Bank (3%); ONGC (2%); TCS (2%) and I C I C I Bank (2%).
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors were:
Top ML sector |
| Worst ML sector |
|
Sugar | 7% | Software & IT Services | -2% |
Hotels | 6% | Oil & Gas | -1% |
Telecom Services | 6% | Industrial Intermediates | 0% |
Cement | 6% | Media | 1% |
Con_EPC_Infra | 5% | Refineries | 1% |
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
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