Mumbai: It was an extremely strong session for the markets as they scaled new heights. It was an all time high closing for Sensex, Nifty and CNX Midcap.
The Sensex closed up 44.07 points, or 0.30 per cent, at 14694.58; and the Nifty ended up 4.6 points, or 0.11 per cent, at 4322.9. Asian markets were all trading in the green.
The cues from Asia and other equity markets were positive. Buying was seen in scrips across sectors.
Midcaps and smallcaps participated in the rally and made gains in line with the benchmark Indices.
All the BSE sector Indices closed in the green. Bank, metal, FMCG and capital goods were leadiing the uptrend.
The realty and construction space was buzzing on Tuesday. In the real estate space Akruti, Peninsula, Unitech and Parsvnath are among the top gainers.
Bharti Airtel, SBI, HUL, Cipla, L&T, Grasim, Tata Steel, ICICI Bank and Reliance Comm were among the top frontline gainers.
Midcap gainers were Voltas, Prism Cement, Centurion BoP, Sasken, UCO and Educomp.
On Tuesday morning, Portfolio Manager P N Vijay, had predicted that the markets would see new highs in July, because of the macros, which were doing well.
Dilip Bhat, Analyst at Prabhudas Lilladher expects the overall northward movement will probably continue, but feels that it should be a gradual process. "I do not think it is going to move with speed if at all it comes down. I think the process will be gradual and probably, at worse, this northward journey could get interrupted possibly by the announcement of some results, which may not be up to the expectation," he added.
Bhat does not expect great results, even from the technology segment, which has been a huge underperformer over the last three months. According to him position wise too, he does not think there has been any great build-up. He does not feel that the markets will see any serious correction, because of the manner in which the mutual funds have raised the money. He notes that some funds were sitting on cash, while the FIIs were also putting money in the markets.
Neeraj Deewan, Director at Quantum Securities, said, “The momentum has been pretty strong, with a whole lot of sectors and stocks moving up. There is definitely some momentum in the market. The results season will start next week, beginning with IT. People are not expecting too great results from that sector. There should be some cautiousness there at this level. The momentum and liquidity is very strong but we should watch out for those results to take a call on the next market action.”
Speaking on how retail investors are trading at these levels, he said, “They are still not going all out and wasting in everything. They are being a little cautious even at these levels. Stock specific investments are being made and in the last two months, returns have been pretty good because the midcaps have been performing,” he added.
On the sentiment change in the markets, Deewan said, “If you see construction, capital goods and engineering stocks, the kind of orders that these have been getting, over the last two months, has been tremendous. The order book of some of these construction and infrastructure companies are huge, based on last year’s sales figures. So, sentiment is very good and even banking stocks, which have added to the sentiment, have taken the rally up. Banking, construction, real estate, and engineering stocks have done well and they should even outperform going forward.”
Vijay Bhambwani, Technical Analyst, bsplindia.com, said, “I am very optimistic on the markets. There is a whole lot of short covering still out there in the system. This will not only accelerate the upmoves; it will also sustain the upmoves as only bears are interested in a falling market, because they need to cover their shorts and book profits. I think you are going to see higher bottoms and higher tops.”
He expects the Nifty to touch 4,450 and sees a further 200-250 points upside on the Sensex. “I think 4,275-4,280 is now a very strong support for traders in the short to medium-term. On the upside, I think the market is open till 4,450 on the Nifty and another 200-250 points on the Sensex,” he added.
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