The
market is well on course to end on a firm note today, extending gains to a
second successive session, as buying continues at several front line
counters. The selling spree seems to have halted temporarily after India
saw one of the biggest outflows in a nervous November. Such was the intensity
of selling that hardly any sector was spared as foreign investors offloaded
about $ 11 billion of equities and bonds in Asia’s emerging markets
following Donald Trump’s surprise victory in the U.S. presidential election.
India has seen close to 11000 crore in outflow this month; the worst ever for a
month since 2002. Today The Sensex ended the day 26051, up 91 points while the
broader Nifty settled the day 8033, up 31 points.
For
now, the Nifty’s move above 8000 level may bring in some psychological
relief ahead of the monthly expiry of derivative contracts on Thursday. The
outlook is a positive start. Expectations that policymakers will extend their
stimulus programs have kept European bonds upbeat. Sentiment
to remain weak given continued worries about the economic impact from Narendra
Modi’s action, with volatility expected ahead of the monthly expiry of
derivative contracts on Thursday.On the upside, the Nifty has significant
resistances at 8050 and 8100 levels. A conclusive rally above the second
resistance is needed to strengthen the bullish momentum and take the contract
up to 8150 and 8200 in the same period. Therefore, traders with a short-term
perspective should desist from trading in the index futures contract as long as
it trades in the sideways band between 7950 and 7900.
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Supports: 7950 and 7900
Resistances: 8050 and 8100
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