Suzlon Energy took part in Global Investors mett hosted by Tamil Nadu government recently.
By S Jha
New Delhi, November 9: Nifty closed above 19400 level on Wednesday with the index facing rejection at the higher levels, showing signs of congestion. Nifty has extended gains after furious rout, and has bagged over 600 points in its kitty in the current spell of the rally. Bank Nifty also have been in a spell of strong rebound, and has correspondingly gained despite volatility on account of the weekly option expiry on Wednesday.
Nifty on Wednesday gave indications of buy on dips trade, with traders buying into the index at the lower end of the swing and exiting at the higher end. With Thursday being a weekly expiry, market participants are betting on a sideways movement amid possibility that the index may spend some time to consolidate.
However, the smallcap and the midcaps are in strong demand zones and several of the stocks are trending up in an indication that the investors have used the opportunity presented by the deep correction to buy into scrips. The advance decline ratio is decisively in favour of the advances, which is indicative of the investors keeping faith in the equity market despite the volatility.
Crude oil is crashing and now trading at the level of around $75 per barrel and the chartists claim that the next support level is further deeper down at around $65 per barrel. This is a decisive breakdown from the recent peak of $97 per barrel. The crash in the oil market along with the cooling off of the bond yields in the US in the backdrop of dovish commentaries by the members of the Federal Reserve who in the past had been hawkish overall present favourable sentiments for the equity market. But as is evident from the Dow Jones, which is also now in a consolidation mode, the indices in India may also stay range bound before the next move kicks in, claimed market participants.
With the earning season at its fag-end, the scrips are trending on the basis of the quarterly results also. Realty sector which has been trending up for the past few months was once more in demand. There is a massive buzz in the micro-small caps and the likes of Suzlon Energy and other power sector firms are trading at record high levels.
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