Stock markets in strong hands, scale new peaks
By S Jha
New Delhi, November 28: Sensex and Nifty on Monday made new highs, with the Indian stock markets charting own course independent of the Asian peers on the back of a sharp slump in the crude oil price, which brought cheers to the traders, who bet on the comforts of Finance Minister Nirmala Sitharaman to stick to the fiscal deficit target. The Dow Jones late afternoon was trading with nearly one per cent cut, which may weigh on the Indian stock markets as well.
The Asian bourses were weighed down by the outbreak of the massive protests in China. The Chinese protests were also weighing down the US stock markets. But India came out unscathed apparently on account of the investors betting on ‘China Plus One’ playing out in the Indian favour, as Europe, Australia and Canada are already looking for alternative options to move out their sourcing of the goods from the Chinese provinces.
The Indian stock markets were in the strong hand as Reliance Industries, the index behemoth, broke out of a tight range, which the chartists had pinned at 2680, to touch an intra-day high of 2720, with traders expecting the scrip to stay strong in the near future. Reliance Industries alone gave a strong stability to the Indian stock markets, which touched their all-time high, with Nifty going past 18600 during the day and Bank Nifty crossing 43150 in the session. Asian Paints, which is linked with the crude oil prices, reacted positively to crash in the Brent Crude Oil, which is now trading at $83 per barrel. Hero Moto Corps, the two-wheeler market leader, also trended positively during the day. The IT stocks were positive, but the metals were weak during the day. Chartists are expecting Nifty to target 18900 in the next few days, while traders are getting ambitious, as December has in the past favoured the bulls. The US traders are also expecting the Dow Jones to touch all-time high by pushing back the fears of inflation, which is seen to have peaked a few weeks ago.
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