The BJP retained power in Madhya Pradesh and seized control of Rajasthan and Chhattisgarh from the Congress
Nifty witnessed a strong session to create history touching the psychological and important 20,000 landmark during the intraday session ending on a positive note with much upside potential visible from here on till 20,400 levels as the initial target, says Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher.
The broader markets have indicated tremendous strength with the ongoing strong bull run and has further immense scope of upside movement in the coming days, Parekh said, adding the support for the day is seen at 19,850 levels while the resistance is seen at 20,150 levels.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the optimism regarding India’s growth prospects in a low-growth world and a fast decelerating China has triggered this rally enabling the Nifty to cross the psychological 20,000 mark.
FIIs, also, have joined the party with a buy figure of Rs 1,473 crore after five days of continuous selling in the cash market, he said, adding that the fact that FIIs have made this purchase when the US 10-year yield is at 4.29 per cent indicates that the ‘FOMO’ (Fear Of Missing Out) factor is driving their decision.
The participation of the fairly valued large banking stocks and RIL make this rally healthy even when the overall market valuation is turning expensive. Investors should avoid the frothy segments of the mid-and small-caps. In the near-term the market is likely to consolidate around the present levels, he said.
BSE Sensex is up 47 points at 67175 points on Tuesday. L&T has the strongest gains, up 3 per cent.