This article is more than 1 year old.

Trader's Diary: Nifty all-time high expected in double-quick time

Trader's Diary: Nifty all-time high expected in double-quick time
Levels on the Nifty and Bank Nifty mentioned yesterday have both been breached and it appears that the game is on for an assault on the Nifty all-time high. This could come in double-quick time with banks having a massive catchup trade ahead of it.
Additionally, Reliance Industries (RIL) could be brutal for anyone who is short the counter with the Street drawing inferences from the IPL presence and the November 5th meet. GDR was up sharply yesterday and that adds to the mix. That domestic mutual funds would hate the RIL move by virtue of their underweight might feed into the rally in banks.
These are heady times as even the PSU pack is gaining momentum with all the talk of market buyback and no more supply coming via the ETF divestment route. Street talk of some names in this pack being great value plays even if they run up 20-40 percent from here tells you just how bullish the Street is.
While yesterday's massive net positive FPI number could be the start of something big, the dollar index dipping towards 92 is supportive of EM flows. That all this is happening while the US election results are yet to be decided and there is every possibility of legal challenges being entertained is further evidence of the mood on the Street.
With US indices threatening to make fresh new highs, Nifty could get to that level in a matter of days. Bank Nifty has significant catchup to do and the PSU pack is suddenly finding cheerleaders. Time to hang on tight while riding the tiger.
 
The author is an independent trader-cum-blogger and has worked at leading brokers on the institutional sales desk over the course of his near three-decade long career in the stock market.
next story

Market Movers

Currency

CompanyPriceChng%Chng