Jolly July: Policy action, global cues to boost mkt by 5-6%

Moneycontrol Bureau

It was yet another quiet session on Dalal Street today. After an initial jump above 5300, the Nifty pared down gains and stayed below that level for the rest of trade. The Sensex too moved in a narrow range, showing signs of consolidation after last week’s fireworks. At close, the Sensex was up 18 points at 17,417, while the Nifty gained 10 points to 5,287. The currency market was also on the radar today, as the Indian rupee fell below 55 to a dollar. The rupee appreciated to 54.73 against the US dollar on hopes of some policy changes from Manmohan Singh and on renewed interest from foreign institutional investors. FIIs have pumped in over Rs 3,500 crore into the Indian market since Friday, a sharp contrast to their bearish stance the past few months. Going forward, some experts believe that the market is now looking to cool its heels before the next leg up, and that 5,300 will pose as a strong resistance in the days to come. Technical analyst Sudarshan Sukhani of s2analytics.com says short-term traders should look to re-enter the market only when the Nifty strongly takes out 5,300. CLICK HERE to catch up on today's trading action.. Portfolio manager PN Vijay, however, belongs to the camp that is batting for a strong upmove in July. He doesn’t expect to see the rally to cool off, and instead says Indian market could move up another 100 points this month. “I think July should be exciting, because with Manmohan Singh, Montek Singh Ahluwalia and Rangarajan running the country, we can expect some headline reforms which will change sentiment,” he said. He goes on to say that positive policy action from the government, low prices of crude oil and a strong dollar-rupee could boost the market another 5-6% from current levels. Anisha Mappat
anisha.mappat@network18online.com