Nifty to touch 9,000 on expiry?

It is a start of a truncated expiry week and it is a market which can make absolute mockery of the levels in expiry week.

I know it sounds quite outlandish after already having seen the kind of the rally that we have seen about 8 percent in the Nifty but in the expiry week, the momentum is with the bulls and normally with the kind of ammunition that the bulls have at their disposal, don’t be surprised if they take markets to crazy levels maybe even 9,000 is scaled ahead of expiry.

9,000 would also coincide with 10 percent rally for this series. We haven’t had a 10 percent rally for the series since -- I think we didn’t have any in the last year. If my memory serves me right, the last time we had such a rally in a series was in September 2010. After that we haven’t seen a 10 percent single series rally in the Nifty and that after all seeing a bit of a correction in the middle of the series. So it has been remarkable.

The last few days have been driven purely by the rate cut by massive foreign institutional investors (FII) inflows. The last seven days has seen more than a billion dollars, 7,100 crore to be precise in the cash market and that has driven the largecap stocks. The Nifty is up some 7 percent in last seven days, the midcaps haven’t done too badly. In last seven days, the midcap index is up 3 percent and 3 percent is not a small gain, it is just that it pales in comparison to the largecap index and after the rate cut, the midcap index after that hasn’t gone anywhere.