NIFTY OUTLOOK FOR 31 & REVIEW

ZIGZAG MOVEMENTS
 
Nifty                               8169  +79

Nifty opened steady and gained gradually to close at the highest level for the day with a gain of about 1%.   Market went up on last day of Derivative expiry due to short covering and value buying in certain scrips. Short term trend continues to remain positive  and would turn bearish only on a close below 8050.  Nifty spot is expected to encounter resistance at 8210,, 8245 and find support at 8130, 8095 for Friday. 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 display zigzag movements with alternate bouts of bullishness and bearishness.

INDICES RECORD NEW HIGH

The benchmark Sensex today surged about 248 points to end at record closing peak of 27,346.33 on across-the-board buying by investors after government eased rules for FDI in construction sector and US Federal Reserve reiterated its plan to keep interest rates at record lows. While BSE Sensex today surpassed both its intra-day high and closing high logged on September 8, NSE Nifty barometer hit a new intra-day peak of 8,181.55 but ended at 8,169.20 just a few notches below its record closing peak of 8,173.90. Promient gainers which lifted key indices to record highs include RIL, Infosys, L&T, Maruti Suzuki, HDFC Bank, Hindalco, HDFC, GAIL, Dr Reddys, ITC, NTPC, TCS. "Markets have been on an upward trajectory on the back of renewed vigor shown by government to initiate reforms, lower crude prices and supportive global cues among others. Though Quantitative Easing ended, but Fed keeping the 'considerable period of time' stance for raising rates until it sees more improvement in the economy, cheered markets," said Devang Mehta, Sr VP & Head - Equity Advisory, Anand Rathi Financial. 

After opening in positive terrain, the 30-share Sensex continued its upward march and soared to hit intra-day record high of 27,390.60, surpassing its earlier peak of 27,354.99 hit on September 8. The Sensex closed with gain of 248.16 points, or 0.92 per cent, at new closing peak of 27,346.33, bettering earlier record close of 27,319.85 (September 8). The 50-share NSE Nifty jumped by 78.75 points, or 0.97 per cent, to end at 8,169.20, after touching a new intra-day high of 8,181.55 that crossed previous record high of 8180.20. Brokers said sentiments turned extremely bullish after the government had yesterday relaxed rules for FDI in the construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms. DLF, Unitech and HDIL shares rose in the range of 1.5-6 per cent. "The equity markets were seen rejoicing. After a flat start, sentiments got some support from positive FII figure of the last session. However, gains remained capped as investors opted to book profits in last half an hour of the session as October derivative contracts were set to expire." Sectorwise the BSE Realty index gained the most by rising 3.44 per cent, followed by IT index 2.04 per cent. Teck Index rose by 1.77 per cent, Oil and Gas index by 1.65 per cent, Consumer Durable index by 1.59 per cent, Capital Goods by 0.94 per cent and Bankex by 0.72 per cent.