The Nifty50 was trading around its crucial psychological level of 8,800 supported by gains in IT, oil & gas, metals, capital goods, and banking stocks.
Out of the 690 legislative assembly seats for which five states have gone to polls from February 4, the north Indian state alone has 403 assembly seats.
Call unwinding at strike prices 8,900 and 9,100, along with fresh Put writing at strike prices 8,600-8,800 points towards a bullish bias, options data suggests.
Sensex is just 2 per cent away from its 52-week high of 29,077, and little over 1,600 points from its all-time high of 30,024 recorded was back in March 2015.
The Nifty50 was trading around its crucial support level of 8,800 supported by gains in realty, oil & gas, consumer durables, and banking stocks.
The concerns about the real estate sector are largely done with, and after the mega booster dose from the Union Budget, things are looking rosy again.
The pain of the cash ban has not reflected much in December quarter earnings, as most firms have reported their results more or less in line with estimates.
Investors no longer fear equities and they now trust MFs as a safer route to beat inflation and create wealth over time compared with other asset classes.
In case, the Nifty50 closes above 8,800 this week, chances of a rally towards 8,900 and then towards 9,000 cannot be ruled out.
In the absence of any major trigger, the next week looks unexciting and will be guided largely by global cues. Chances of consolidation cannot be ruled out.
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