Home > Market View, NIFTY Strategy > Can we break 5200 on NIFTY?

Can we break 5200 on NIFTY?

Monday, November 9, 2009 Leave a comment Go to comments

Today’s rally was not entirely unexpected although the markets took their time in recapturing 4850 mark and then zooming ahead. The rally is looking promising and is making the way for 5200+ level on the NIFTY. This might be an early or premature call but bulls definitely have a upper hand and might want to prove a point. The biggest advantage now is that one can clearly define his or her downside risk and go long on this market.

I am still hoping that Oct-Dec rally actually plays out. It looked very doubtful when we corrected so sharply from 5200 levels to 4500 levels. Now conditions are looking much healthier after this deep correction.

In terms of sectors- banking has made a roaring comeback! Look how old favourites like ICICI, SBI, HDFC Bank etc. moved up. If NIFTY breaks 5200, this will be the sector to watch. From Allahabad bank to Yes bank to UCO bank, you will find many good stocks in this sector for short to medium term. at the same time, this sector is prone to a major sell off if RBI decides to hike interest rates as part of their monetary policy.

Auto stocks like Maruti and Ashok Leyland continue to hold promise and are steadily climbing up.

In midcaps, selected stocks like Dabur or Deccan chronicle are still climbing up nicely.

In IT, Satyam made a big move today and this might be the beginning of a journey towards 140-150 levels in next month or so.

In pharma, Lupin, Ranbaxy and Dr. Reddys has given decent returns in  past 2-3 months and continue to deliver.

In oil and gas, Gail and Cairn India are shwoing sustained momentum on the upside.

Lets closely watch the market action this week and see if we manage to close above 5000 on a weekly basis. That will be the beginning of final assault by the bulls.

I am spending most of my time in researching some mid cap ideas for the long haul.

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  1. mahi
    Wednesday, November 11, 2009 at 11:44 am

    sir please sujest some mid cap shares.thank you.

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