InvestorQ : What is your trading view for 06th September and do you see Reliance still going higher from current levels?
Dhwani Mehta made post

What is your trading view for 06th September and do you see Reliance still going higher from current levels?

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diksha shah answered.
2 months ago
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The bull rally appears to be continuing unabated as the Nifty scaled higher to above the 17,300 levels on Friday last week. In the previous week, 9 out of the 10 most valuable stocks on the Nifty closed with gains. Sensex has actually gained 10,000 points or nearly 22% just in this calendar year. In short, we are in the midst of unprecedented buying helped by flows.

Let me address your query on Reliance first. I had suggested RIL with an outer limit target of Rs.2350 but it appears to have broken well above that. It now looks to scale well beyond the 2,500 mark. This time around, the story is about the inorganic acquisitions being made by RIL from Just Dial to alternate energy in Norway and telecom major in the Netherlands.

There appears to be a change in sentiments on India among FPIs. On Friday, the FPIs were net buyers worth Rs.769 crore while local institutions bought Rs.669 crore. In the month of August 2021, FPIs infused $284 million into equities, but nearly 8 times that amount was infused into debt as the rate differentials are once again attractive to bond investors.

The global cues on Friday are not too clear. On Friday, the Dow was weak ahead of jobs data, which eventually was much weaker than expected. That should weigh on Dow Futures on Monday. NASDAQ closed slightly higher but most European markets were sharply lower. SGX Nifty is up in early trades but could face pressure as the day goes by.

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