Nifty closes above 5850 on FM's NIB proposal

Finance ministers P Chidambaram's proposition in Parliament to set up National Investment Board (NIB) that monitor and advise ministries on expediting projects entailing investments in excess of Rs 1,000 crore captivated market participants.

The Sensex closed at 19339.90 up 168.99 points or 0.88% and the Nifty ended at 5876.20 up 51.20 points or 0.88%, About 1654 shares advanced, 1251 shares declined, and 560 shares remain unchanged.

All the major sectoral indices ended in green, barring auto, FMCG and realty. Metal stocks led the rally for Sensex today. Click here for sectoral indices

Jindal Steel was the top gainer on the Sensex registering 5.4% gains. Coal India and Bajaj Auto remained top losers. Click here for Top gainers, Top losers 

The market completely ignored GDP numbers and took refuge in Finance Minister's assurance on NIB, which is part of the reforms programme planned by Chidambaram. Click here for Q2 GDP

Indian markets have been rallying since November 20, giving hopes that Nifty may come close to the 6000 mark in December or early January. Brokerages and international rating agencies too have been upgrading India to overweight.

Weekly/Monthly Gainers

Suzlon energy gained about 28% for the week. The stock was reeling under pressure on high debt, picked upward movement as lenders agreed to restructure company’s debt.

On monthly basis, United Spirits clearly stole the show. It gained 69% in November 2012. The gains were on the back of the Diageo deal, wherein Diageo will acquire majority stake in the company.

Similarly, Jet airways soared about 57% in November 2012, on back of the news that it will enter into a deal with Etihad and may use the funds to retire debt.

FIIs buy, DIIs sell

FIIs buying in the past have moved in tandem with market rally several times. In November 2012, FIIs bought stocks worth more than Rs 8000 crores as per provisional data. Nifty hit fresh new highs in this month as well. Mutual Funds were however net sellers on profit-booking by domestic investors. Click here for FII stats

Sensex to hit 20800 by December

India in 2013 will be cacophonous; a mix of politics, impending elections, reforms and economic revival expectations, Citigroup said in report.

The investment bank expects Sensex to reach 20,800 by December 2013, based on premise of 9.6-12 percent earnings growth for FY13-FY14 and a valuation multiple of 14.5 times - a slight discount to its 15-16 times longer-term average. Full article

Chart Check by Bonanza

Nifty has formed a bullish candlestick chart pattern on daily as well as weekly charts. Nifty passed its 5850 resistance level on closing basis which indicates further strength in near-to-medium term. After consolidating for more than 2 months, Nifty has finally broken the range with conviction and high volumes.

In the coming sessions, market is likely to see consolidation in upper range of 5950-5800 level. Above 5890, likely upward targets are 5950-6000. Support is seen at 5825-5775 levels and resistance near 5890-5925.

Gold hits 2-week low

Gold importers in India, the world's biggest buyer of the metal, continued to pile up bargain stock in view of the wedding season, as prices extended losses for a fourth day to hit their lowest level in two weeks.