Apart from stable global cues, a better monsoon outlook from IMD provided relief to investors. The Street is also building hopes of further rate cuts to reverse the economic slowdown
Finally! It was a Terrific Tuesday as Nifty finally broke out of the narrow range of 11,550-11,700 to register fresh record highs above 11,800 for the first time.
The index surpassed its previous record high of 11,760 recorded on April 3 to hit a life high of 11,810.95. The S&P BSE Sensex also hit a record high of 39,364.34.
The final tally – the S&P BSE Sensex rose 369 points to 39,275 and the Nifty50 closed 96 points higher at 11,787.15.
Banks, consumer durables, and telecom stocks led the rally while realty stocks witnessed some profit taking.
The broader market underperformed benchmark indices. The S&P BSE Midcap index rose 0.12 percent while the S&P BSE Smallcap index rose 0.37 percent.
Apart from stable global cues, a better monsoon outlook from IMD provided relief to investors. The Street is also building hopes of further rate cuts to reverse the economic slowdown.
Investors should stay put and avoid profit booking at higher levels because chances of a further rise in markets look likely, suggest experts.
“Nifty has rallied after consolidating to break past its previous high of 11,760. We are advising our clients to avoid profit/loss booking at this point in time. They should hold onto their investments,” Shrikant Chouhan, Senior VP (Technical Research) at Kotak Securities told Moneycontrol.
“We have three stocks on our radar in the midcap space. We like Godfrey Phillips India which is trading around Rs 1,190. It can be bought for a target of Rs 1,500-1,600. The second stock we like is Bombay Burmah Trading that could see a further rally of over 300 points. The next possible target would be around Rs 1,600,” he said.
The last stock that Shrikant likes is from the banking space - DCB Bank. The stock is doing well on the charts as it broke from a consolidation pattern. It is trading near its all-time high levels of Rs 213-215. He expects the stock to touch a target of Rs 240-250.
Stocks in news:
Shares of Polycab India, a wires and cables manufacturer, listed at a premium of nearly 18 percent to its issue price of Rs 538. The stock closed 20 percent higher at Rs 653.20.
Shares of Wipro declined more than 2 percent ahead of its Q4 earnings. Wipro reported a net profit of Rs. 2,483.5 crore for the quarter ended March 31. That marked a 1.07 percent fall from its net profit of Rs. 2,510.4 crore registered for the previous quarter.
ICICI Bank jumped 3 percent after global research firm Goldman Sachs reiterated 'buy' call on the stock and raised the target to Rs 492.
Shares of Deepak Fertilisers rose 13 percent after company commenced commercial production of Nitric Acid Plant at Dahej, Gujarat.
Jet Airways fell 7 percent on speculations about temporarily shutting down its operations.
European markets are trading marginally higher amid US corporate earnings.
Asian markets ended higher as Shanghai Composite added 2.39 percent at 3,253.60 and Nikkei jumped 0.24 percent to 22,221.6.Hang Seng rose 1 percent at 30,129.87, while Kospi was up 0.26 percent at 2,248.63.