How do you see the stock markets on 14 July and what is your view on the Nifty? Do you see further upsides?
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Answer 
After an uncertain Monday, it was a day of relentless gains for the Nifty and the Sensex on Tuesday. The Nifty closing 120 points higher while the Sensex closed nearly 400 points in the green. The rally was driven by frontline banks and they being heavyweights make it a lot more credible. However, flows into secondary markets from FPIs are still tepid.
The market appears to have interpreted the IIP data with a positive touch on Tuesday. Markets appear to have understood the weak sequential IIP growth as a hint that RBI would most likely continue its accommodative policy. Markets are also betting that the government may not look at continuous bursts of fiscal stimulus programs.
Foreign investors were net buyers to the tune of just about Rs.114 crore while domestic institutions bought Rs.344 crore in the equities market. Markets ranging from the NASDAQ and Dow to European markets were marginally in negative. SGX Nifty is almost flat to positive in early trades and we could see follow up buying on Wednesday.