Mumbai: Buoyed by the fresh impetus given by RBI, renewed buying from the FIIs and expectations over the first budget of the new government, markets have vaulted to lifetime highs.
Both the benchmark indices the Sensex and the Nifty closed 5 per cent higher at 25,396 and 7,583. Midcap and Smallcap indices continued to outperform the frontline indices.
Cash market volumes have doubled in the past few sessions indicating return of the retail investors.
Huge churning of stocks is indicative of the heightened speculative action. Market player’s shift from defensive to high beta stocks is pointer for huge volumes and sharp movements in many stocks.
Reports of the IMD that conditions have turned favorable for the progress of monsoon in India turned the sentiment positive over weekend. Attention of market players is focused on the upcoming Union Budget and the progress of monsoon. Key market moving data announcements in the coming week include IIP and CPI data on home front; Chinese trade balance numbers and US retail sales data. For the week ahead chartists predict wide trading range of 24,800-26,000 for the Sensex and 7,100-7,350 for the Nifty.
Immediate supports are at 25,000 and 24,800 and 7,480 and 7,400.
