CHOPPY MOVEMENTS...BUY ON DECLINE
Nifty
Indices scaled a new high and Nifty closed with a gain of
more than 1%. Bank and Infra stocks led the rally. Nifty being at a new high,
it can be expected to touch the magic figure of 8000 in this month. Nifty spot
is expected to encounter resistance at 7915, 7950 and find support at 7835, 7800
for Tuesday. While Global cues and
Funds flow are expected to
broadly guide the market movement, based on the present market position, market
can be expected to face zigzag / choppy
movements and any reasonable decline during the day may be utilized to buy with
a target of about 8000 during the month.
INDICES @ NEW HIGHS
Rising
for the fifth day, benchmark Sensex today gained 288 points to end at
new peak of 26,390.96 and the Nifty soared 83 points to close at new
high of 7,874.25 after Prime Minister Narendra Modi's August 15
pledge to boost infrastructure and manufacturing fired up markets.
Opening after a long weekend, stock markets were in a cheerful mood
as investors infused funds to pick up shares across-the-spectrum.
Sustained buying by foreign funds and firm European trends also
helped, brokers said. Besides, a fall in global crude oil prices
following receding geo-political concerns sustained the positive mood
on domestic bourses as India imports nearly 80 per cent of its oil
requirements, they added. Buying was seen mainly across-the-board as
10 out of 12 BSE sectoral indices closed with gains of between 0.26
per cent and 2.64 per cent. Oil&gas, banking, capital goods,
power and metal shares led the charge while select FMCG and IT
counters attracted profit-booking. "Markets witnessed a strong
rally, which was boosted by positive statements from Prime Minister
Narendra Modi, who emphasised the need for better governance and
focus on improving infrastructure and manufacturing sector,"
said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio. The
S&P BSE 30-share Sensex resumed slightly better and gradually
improved further to an intra-day all-time peak of 26,413.11 before
settling at new high of 26,390.96, showing a spurt of 287.73 points
or 1.10 per cent. In straight five sessions, it has now zoomed
1,061.82 points or 4.19 per cent. ICICI Bank, ONGC, Tata Motors, Axis
Bank, Cipla and BHEL were among prominent gainers in 24 Sensex
counters that rose. The Sensex's previous all-time high was 26300.17
hit on July 25, 2014. It earlier closing peak was 26271.85 (July 24).
Similarly, the 50-issue CNX Nifty of the NSE logged an intra-day new
high of 7,880.50 before ending up by 82.55 points, or 1.06 per cent
at 7,874.25 - a new closing peak. The Nifty hit previous all-time
high of 7840.95 on July 25. Its earlier closing peak of 7830.60 was
hit on July 24. Buying today was mainly boosted by consistent buying
by foreign institutional investors (FIIs), who had picked up shares
worth Rs 2,143.97 crore last week. Meanwhile, Asian stocks closed
mixed while Europe was trading higher in late morning deals.
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