Bluechips providing resilience to market rally

Business |  IANS  | Published :

New Delhi, Sep 15 (IANS) The participation of bluechips like Infosys, RIL, L&T, HDFC Bank and ICICI Bank has imparted resilience to the ongoing rally, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Even though the undercurrent of the market is bullish the high valuations and new risks like surging crude and rising dollar index can impact the market negatively, he said.

Brent crude at $94 is a major macro worry which the market cannot ignore for long. The rising dollar index which has breached 105 and the attractive US bond yields (10-year at 4.28 per cent) will force the FIIs to sell aggressively soon, he added.

Even while remaining invested in this rally investors can consider some profit booking, particularly in the over-heated mid-and small-cap space. In the micro-cap segment, hope and momentum, not fundamentals are driving the rally, he said.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher, said Nifty recorded new high in the morning session near 20,160 zone, and thereafter finding consolidation near 20,100 ended the day on a positive note slowly inching towards our target of 20,300 zone.

Once again the participation from the broader markets were significant to support the index and one can anticipate further rise in the coming sessions. The support for the day is seen at 20,000 levels while the resistance is seen at 20,300 levels, Parekh said.

BSE Sensex is up 265 points at 67,784 points on Friday morning. Tata Motors is up 1.7 per cent.

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