Home > Market View > Will NIFTY get past 5200?

Will NIFTY get past 5200?

Sunday, December 6, 2009 Leave a comment Go to comments

This is the question that is being asked by every trader and investor. I am still playing for 5500+ by Jan 2010, although I am not too sure as to which sectors will probably take it there.

So far auto, IT and pharma have been the leaders in this rally. If this market has to go past 5500, we need some buying in stocks like Reliance, BHEL and L&T. So I’d be keeping a close eye on these stocks and will try to catch the next big wave in them( if it happens!)

Auto and banking might be a bit of a drag on the index if interest rate hikes come through earlier than expected. Although in the long term, banking is definitely looking like a star performer.If the Indian growth story returns, this is a sector that will benefit the most from any upturn. So any correction would be a good opportunity to grab these stocks.

What I like the most about current market action is the absence of widespread euphoria. The retail investor is still sceptical about this rally and is happy to earn his 6% in a fixed deposit. As long as this risk aversion prevails, this market might continue to climb slowly.

Technically, 4970-80 remains a good support in the short term. On the upside 5200 is the critical hurdle. Above 5200, we might see a lot of short term traders jumping in and chasing market  momentum.

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Categories: Market View
  1. Raman
    Wednesday, December 9, 2009 at 11:58 am

    I had lost a lot of value due to the 2000 point correction recently which took sensex to 15500 levels from 17 and then back 17k again.

    Though sensex is back some stocks I am invested in are stuck at their lows (Like IndiaBulls Securities, Idea Cellular, Moser Baer etc).

    I was thinking of existing them at COST, seeing your optimism I think I would do good to hold on till Jan end to see if there is any upmove even if they reach my cost price…
    Justified?

    • Thursday, December 10, 2009 at 6:50 pm

      I won;t hold any of the stocks you mentioned as they are in a downward trend. I’d use any rallies to get out of such stocks.

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