Global mkt rally continues; 5400 on cards for Nifty today

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say

Globally, things are very good; there was a very big rally on Friday. The data in US data was very strong. Nifty closed up very smart on Friday and was well above 5,300 levels. So, global and local market rally continues undisturbed as we wait through the first week of February. There seem no problems on the horizon so far and today the Nifty has 5,400 in its sights, reads CNBC-TV18's managing editor Udayan Mukherjee.

Global markets have been the most overwhelming feature of this year especially, the way the US markets closed on Friday. The Dow Jones index is 10% away from an all time high. That is as good as it gets and who would have thought that would have been possible just a few weeks back. It has been an exceptionally strong run for the US markets.

The data is also very supportive, unemployment has dropped to 8.3%, the non farm payrolls data and ISM services numbers were very strong. So, the US remains in almost a bull market kind of situation for the last many weeks  that is not starting this year, it happened fag end of last year as well.

One needs to take on board that Asia is not responding very well today. I don't know whether it is because of fears that Greek resolution has not happened yet and what Europe will open up to today afternoon or whether it is crude which is rising now to USD 115 per barrel. So, those are some of the pointers which cause a little bit of concern. But that is not to take away from the big global liquidity party that is on and the very strong leadership that the US market has been exhibiting for the last few months.

We have been step in step more than performance and money. Today we start with a gap up again and that is becoming the routine of this market, it is fueled by a lot of momentum and you wake up next morning getting 0.5-1% up and then build on that during the course of the day. So, it has become a very virtuous kind of trading cycle for a lot of people. A lot of traders are making money chasing the trend and the momentum. So, it is not even that volatile any longer.

The news on Chidambaram and the relief from the trial court over the weekend also helps on the margin in terms of sentiment. We will probably start strong and then run into that 5,400 wall and see what we make of that. But nothing on the screen suggests that we are about to slide or slip off just immediately. It is still looking like a very strong momentum market.

Also watch the accompanying video.