Nifty closes above 5350; telecom, banks, metals, realty up
09 Jul 2010
The benchmark Nifty has maintained its uptrend for a second consecutive day, led by global cues and closed above 5350 on Friday, for the first time since June 21, 2010. Telecom, technology (barring TCS), financial, metal, realty and auto companies' shares helped the Sensex rally 182 points.
About 4 lakh shares added in open interest at 5400 call and also good surge in premium of 14.5 points. The Nifty had been in a range of 5200-5300 for the last three weeks. Now all experts feel that the Nifty would cross 5400 soon.
The markets should sustain a breakout and head higher, said Dr CK Narayan, President-Treasury, Sharyans Resources. "The floor of the market is moving up as no previous low has been violated. The Nifty should hit the 5,450 in the near-term."
Vikas Pershad of Veda Investments sees the Sensex at 20,000-21,000 levels by March 2011. India's outperformance is on account of its economy, he said.
Even Investor Gul Tekchandani says, "If you look into next year, probably June, you might see the index at 21,000 plus."
Global markets have been supportive this week; US markets gained for three straight day and Europen markets have been trading positive for 4th day. Financials were leading the rally, especially after upbeat outlook on earnings from State Street, world's second-largest custody bank. Even fears eased ahead of European banks stress test on July 23. Other reasons were - US Jobless data and IMF increased its 2010 world GDP forecast to 4.6% from 4.2%.
European markets were trading marginally higher while US index futures slipped a bit, at the time of closing of Indian equities. Asian markets closed strong; Shanghai jumped 2.31%. Hang Seng was up 1.64% and Kospi up 1.4%. Jakarta, Straits Times, Nikkei and Taiwan were up 0.5-1%. Wall Street gained 0.7-1.2% on Thursday.