Early on D-Street: Above 11,884, Nifty may test 11,981; create fresh long on dips
Episode 1845, Oct 31, 2019, 02:06 AM
As long as the Nifty holds above 11,700 levels, bulls should be able to regain control
The festive cheer pushed the Nifty and Sensex above crucial resistance levels on October 30, with the latter closing above 40,000 for the first time since June 4.
Let’s look at the final tally on D-Street – the BSE Sensex rose 220 points to end at 40,051 and Nifty ended 57 points higher at 11,844 on October 30.
The rally was broad-based with most gains coming in the public sector, followed by IT, and oil & gas indices.
On the macro front, investors would react to infrastructure output data, and volatility could remain as we head towards expiry on October 31.
Experts feel expectations of new reforms from the government, better-than -expected results from India Inc, divestment in PSU companies, and further rate cut hopes will lift sentiment.
Overnight, US markets ended higher with the S&P 500 closing at a record high for the second time in three sessions, after the US Federal Reserve decided to cut interest rates by a quarter of a percentage point.
The Commerce Department's advance reading of third-quarter GDP showed the US economy expanded at a 1.9 percent annual rate, down from two percent in the second quarter but beating the 1.6 percent growth rate that analysts expected.
The next big question in front of investors is -- should one book profits at current levels? The rally is showing signs of fatigue at higher levels, hence some consolidation could take place. But, the overall momentum still remains intact.
Investors should use any dips to accumulate quality stocks as the market look poised to hit fresh highs in the next few weeks, suggest experts.
On the institutional front, FPIs were net buyers in the Indian markets to the tune of Rs 7,192 crore while DIIs were net sellers to the tune of Rs 185 crore, provisional data showed.