A morning walk down Dalal Street | Nifty should reclaim 11,900 if the current momentum stays intact
Episode 1340, Jun 21, 2019, 01:30 AM
Bulls are back! Yes, what a day for Indian markets -- a strong rally of 140 points puts bulls back in the driver’s seat. Although, some of it could be because of short coverings
The index managed to close above the crucial short term moving averages in a single session
It has also put aside any negativity thanks to a relief rally in global markets after US Federal Reserve signaled a dovish view and hinted at more rate cuts
The gloominess in the markets took a U-turn and most of the debt-laden companies which cracked on Wednesday showed a sudden upmove on Thursday -- this is a clear indication of a dead cat bounce, says Umesh Mehta, Head of Research, Samco Securities - where fundamentally weak companies face sudden moves for no sound reason, he added.
The Street is also cheering the Fed’s move to keep the rates unchanged with an expected rate cut of about half a percentage point in the coming year. This will ensure an inflow of funds to emerging countries like India and boost the markets.