It was a positive start to the week Dalal Street with the Bank Nifty hitting new highs and both the Nifty and Sensex rallying close to three-fourth of a percent.
The Nifty Bank index rose over 300 points to record its fresh record high of 23,806.65 in trade today. The 30-share BSE Sensex was up 255.17 points at 31,311.57 and the 50-share NSE Nifty rose 69.50 points to 9,657.55, aided by banking & financials, metals, FMCG stocks and Reliance Industries.
SP Tulsian sptulsian.com says the market has been consolidating and the Bank Nifty in the last 13 trading sessions hasn’t closed below 23,300 and Nifty Future has not closed below 9600 baring 10-points either way. This shows that there was no weakness in the market.
There are strong hands holding this market but he attributed today’s market rally to the strong income collection of 26 percent.
Ashwani Gujral ashwanigujral.com cautions that once you get a very large day on any index then second day could be a sideways day.
Mayuresh Joshi Angel Broking Ltd says the bias in the banking space stays with the large private banks especially post all the news that is happening for the sector, farm loan waiver etc. ICICI Bank remains a favourite for him. He also like Hindalco names from the largecap space and Carborundum from the midcap basket.
Abhimanyu Sofat of IIFL says with the flows kicking in and low crude prices, tailwinds for Indian market continues but advices caution. He says it would be safer to play stocks like HDFC Bank, ICICI Bank, which may not correct in case there is a fall.
Going forward, Sofat expects there to be some challenge in terms of GST implementation, which could impact market but structurally, the story would be based on the quarterly numbers that would come out in 3 weeks times.
The big theme to bet on going forward is rural, says Sofat.
Mitessh Thakkar mitesshthakkar.com said he would trade in the market with a positive bias tomorrow unless Nifty breaks levels of 9620 on the downside.For the entire discussion, watch video