Sensex up 281 points on BHEL results, FIIs
April 4: Continued buying by the FIIs and the good performance from BHEL saw the markets trade strongly with the Sensex up 300 points intra-day and closing up 281.34 points at 19,701. It was almost as if the euphoria of the World Cup win permeated the markets too.
The Nifty had a strong close at 5,908.45 up 82.40 points and the Nifty futures was at a 40 point premium at close, indicating its strength. “The kind of bullishness that we saw on Monday has overpowered the market’s technicals,” said Mr Alex Mathews of BNP Paribas Financial Services. Most of the frontline stocks are trading above their respective 200 DMAs (day moving average), while the midcap and smallcap stocks are showing fresh buying interest. He says the Nifty could be looking at targets of 6,000-6,181.
Mr Satish Kantheti, joint managing director of Zen Money is equally bullish on the markets. A lot of FIIs consider the 200 DMA critical levels, he said adding that 5,700 on the Nifty and 19,000 on the Sensex are critical support levels in the short term so FII money will continue to flow in. He says the other reason for the FIIs to prefer the Indian markets is the strength of its currency. The Rupee stands out. They prefer stronger currencies as it gives them arbitrage opportunities. There’s a short to medium term risk in the crude oil prices, but that will not deter the FIIs he said. The booster to the markets today that pared some of their early gains after opening was BHEL, which fared better than the Street’s expectations.
It’s provisional net profit for 2010-11 (April-March) rose nearly 40 per cent to Rs 6,021 crore. It changed the outlook, said Mr Avinash Gupta of Bonanza Portfolio Ltd, and the engineering stocks were all up. Monday’s performance of the markets was exceptionally strong.
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