The market maintained positive momentum with the Nifty holding the 6300 level supported by banks, oil and gas and metals stocks.
Friday's broadbased €Santa Rally€ (371 points upmove on the Sensex) helped overturn the possibility of a flat close with negative bias. The 30-share BSE Sensex climbed 364.14 points or 1.76 percent to close the week at 21,079.72 and the Nifty rallied 105.85 points or 1.72 percent to 6,274.25.
Relentless inflow of foreign money and steady rupee despite tapering is an indication that the market may not bother about the tapering going ahead, feel experts. In fact, they are betting big on India and expect incremental FII money in the year ahead, driven by hopes that economy may improve, October-December quarter earnings may be better than earlier quarter and India may get stable government post general elections in 2014.
Nifty was choppy and volatile for the past week as anticipated in our previous analysis. Nifty rallied smartly first three trading sessions of the week but sharp fall on Thursday,erased all the gains. Nifty Closed 0.60% lower on weekly basis,marking consecutive four weeks of decline.
Nifty remains weak below its 20 day moving averge but is oversold in immediate short term. Traders should watch 24% retracement around 5815-5777 support areas closely,recovery from this areas is most likely. Booking partially in shorts and holding rest with trailing stops advisable. Failure to hold 5777 areas can open floodgates with bears pushing for lower levels.
After looking at Friday's rally, I expect the Nifty to see expiry at around 6200 level and not 6300
The flow of foreign money remained healthy during the week as well as for the current year so far. Foreign institutional investors have bought Rs 6,178 crore (including provisional figure of Friday's trade) worth of equity shares in the week gone by.
After vacillating in a tight range for a major part of the calendar year, the BSE Sensex recorded a new intra-day high of 21,483.74 on December 9. In 2013 so far, the 30-share index has risen by 1,653.03 points or 8.5 per cent, from the 2012 close of 19,426.71. Last year, it gained 26 per cent.
In 2013, best performing bluechips include TCS (up 68.41 pc), InfosysBSE -1.53 % (53.22 pc), Wipro (39.20 pc), Dr Reddy's (37.21 pc), Maruti SuzukiBSE -0.45 % (21.56 pc) and Tata MotorsBSE 0.80 % (19.41 pc). However, Jindal SteelBSE 2.71 % tumbled by 44.01 per cent, followed by L&T (33.89 pc), BHELBSE 2.20 % (27.52 pc), SBI (26.51 pc), Sun Pharma (21.31 pc), Coal India (19.94 pc) and Tata Power (17.90 pc).
The 50-issue CNX Nifty of the National Stock Exchange (NSE) also moved similarly to log a new intra-day high of 6,415.25 on December 20. It has gained 369.15 points, or 6.25 per cent, since its last year's close of 5,905.10.
The BSE-Smallcap and BSE-Midcap indices closed down by 14.92 per cent and 8.58 per cent, respectively. IT, Pharma, FMCG, Auto and Oil&gas sector registered sharp to moderate gains while Realty, Consumer Durable, Power, Metal, Capital Goods and Banking posted losses.
In 2014, markets will be guided by the outcome of the Lok Sabha election results and positive economic reforms to be introduced by the government to aid growth... expect Sensex to hover in the range of 18,000 to 22,500 levels and Nifty to be between 5,200 and 6,750 levels
Friday's broadbased €Santa Rally€ (371 points upmove on the Sensex) helped overturn the possibility of a flat close with negative bias. The 30-share BSE Sensex climbed 364.14 points or 1.76 percent to close the week at 21,079.72 and the Nifty rallied 105.85 points or 1.72 percent to 6,274.25.
Relentless inflow of foreign money and steady rupee despite tapering is an indication that the market may not bother about the tapering going ahead, feel experts. In fact, they are betting big on India and expect incremental FII money in the year ahead, driven by hopes that economy may improve, October-December quarter earnings may be better than earlier quarter and India may get stable government post general elections in 2014.
Nifty was choppy and volatile for the past week as anticipated in our previous analysis. Nifty rallied smartly first three trading sessions of the week but sharp fall on Thursday,erased all the gains. Nifty Closed 0.60% lower on weekly basis,marking consecutive four weeks of decline.
Nifty remains weak below its 20 day moving averge but is oversold in immediate short term. Traders should watch 24% retracement around 5815-5777 support areas closely,recovery from this areas is most likely. Booking partially in shorts and holding rest with trailing stops advisable. Failure to hold 5777 areas can open floodgates with bears pushing for lower levels.
After looking at Friday's rally, I expect the Nifty to see expiry at around 6200 level and not 6300
The flow of foreign money remained healthy during the week as well as for the current year so far. Foreign institutional investors have bought Rs 6,178 crore (including provisional figure of Friday's trade) worth of equity shares in the week gone by.
After vacillating in a tight range for a major part of the calendar year, the BSE Sensex recorded a new intra-day high of 21,483.74 on December 9. In 2013 so far, the 30-share index has risen by 1,653.03 points or 8.5 per cent, from the 2012 close of 19,426.71. Last year, it gained 26 per cent.
In 2013, best performing bluechips include TCS (up 68.41 pc), InfosysBSE -1.53 % (53.22 pc), Wipro (39.20 pc), Dr Reddy's (37.21 pc), Maruti SuzukiBSE -0.45 % (21.56 pc) and Tata MotorsBSE 0.80 % (19.41 pc). However, Jindal SteelBSE 2.71 % tumbled by 44.01 per cent, followed by L&T (33.89 pc), BHELBSE 2.20 % (27.52 pc), SBI (26.51 pc), Sun Pharma (21.31 pc), Coal India (19.94 pc) and Tata Power (17.90 pc).
The 50-issue CNX Nifty of the National Stock Exchange (NSE) also moved similarly to log a new intra-day high of 6,415.25 on December 20. It has gained 369.15 points, or 6.25 per cent, since its last year's close of 5,905.10.
The BSE-Smallcap and BSE-Midcap indices closed down by 14.92 per cent and 8.58 per cent, respectively. IT, Pharma, FMCG, Auto and Oil&gas sector registered sharp to moderate gains while Realty, Consumer Durable, Power, Metal, Capital Goods and Banking posted losses.
In 2014, markets will be guided by the outcome of the Lok Sabha election results and positive economic reforms to be introduced by the government to aid growth... expect Sensex to hover in the range of 18,000 to 22,500 levels and Nifty to be between 5,200 and 6,750 levels