What is your quick take on the Nifty and Sensex for Thursday 08 October? Will the 11,800 level be the next resistance?
Answer
Answer
The rally continued for the fifth successive day as TCS and Reliance drove markets higher. The Sensex is now just 200 points away from the 40,000 mark and that could be a resistance. RIL gained from the ADIA investment while TCS gained from buyback hopes.
The immediate trigger is on 09 October when the 3 day meeting of the MPC culminates in the announcement of the monetary policy on Friday afternoon. Rate cuts are ruled out but a dovish language and liquidity infusion would make a difference to sentiments of the market.
It looks like the foreign investors have again turned risk-on as FPIs infused Rs.1094 crore in equities. However, domestic liquidity pressures appeared to continue as DFIs sold Rs.1129 crore on Wednesday. The last one week has seen a sentiment shift by FPIs.
On Wednesday, there was a sharp rally in the Dow and NASDAQ as US markets recovered from the Trump uncertainty. SGX Nifty is up about 15 bps in early trades and the momentum is favorable, although 11,800 could be an immediate resistance for Nifty.