Market on Friday-Prediction and Analysis

Market is All time High Level, Touch 5000 target, Great Achievment .Market may Now take a Correction-as 80% broker said that market may go to Some sort of correction now.

Raging bulls on their way - 5000 conquered on the Nifty and a 17,000 close above that on the Sensex. Could we have asked for more? Not in today’s session. In one session, we have been given all the good news that we can possibly digest. We’ve closed bang on 5,000 in today’s session. We scored that level in early part of trade, then just moved off a wee bit, but then there was a surge that came by at the end, giving us a gain of almost 60 points on the Nifty, over 1% up.

For the Sensex, it was again a close above the 17K mark, 17,150 and we did it in style. A double century coming in with 229 scored on that index. There were cues that were supporting us right from the start of trade today. All the Asian markets were well in the green, the US markets closed up well. So, there was definitely momentum playing in our favour and more importantly sentiment across the globe was also very bullish and that clearly helped us in trade today.

If we take a look at the broader markets, there was not so much excitement by way of outperformance. Remember these are the markets that really showed a lot of strength in the early part of the month. But in today’s session, we saw most of the midcaps and small caps as well as the Nifty Junior cool off and close rather flat. The advance-decline ratio gave out the picture quite perfectly. The disappointing aspect in today’s session was the fact that we closed in a record-breaking manner for the benchmark indices, but could not quite maintain that performance in the broader markets and closed with a negative market breadth.

On the F&O side, very healthy turnover, record turnover, 65% rollovers seen. That is a smooth rollover for a heavy series like that with almost 65 lakh shares added in open interest. We are talking about turnover. Rs 1 lakh crore + traded on a day-on-day basis for the better part of the week and in today’s session, Rs 1,14,000 crore traded with Rs 20,000 crore coming in from the cash market and a record for the F&O segment Rs 86,000 crore done there.

Sectorally, there were four themes that really played out quite extensively in today’s session, metals, IT, banks and of course autos. We had the realty index also making some gains, but that was clearly not as substantial to the way IT and metals moved.

The big mover first, ONGC, 4% up at closing bell. The stock witnessed a lot of activity even on the F&O side. From the IT pack, it was clearly the bellwethers that spearheaded this rally, second day in a row and we are continuing to see buying interest in most of these main counters.

Metals also showed a surge and a strong one at that. So, we had all the metal majors close with record highs in today’s session. Banks came out and came out with strength, not just frontliners, the midcap banks as well. HDFC Bank and ICICI Bank, the private sector duo had a fairly good session in trade today. From the midcap space there were particular movers, JP Hydro, deserves special mention there and Nagarjuna Fertilisers as well as GMR Infrastructure made a special move for themselves. But the momentum boys corrected in today’s market, which is why we saw pressure in the broader segment. RNRL, RPL, most of those counters corrected and saw a bit of profit booking in today’s session.

In fact from the entire sectoral pack from the broader markets, we had the sugar sector that took a hard knock and in today’s session most of the majors lost out considerably. So, that one spot that turned sour in today’s trade. Celebration was clearly not broad-based. But nevertheless we can rejoice at the fact that we are at landmark levels for the Nifty and the Sensex. Last trading session of the week to go. It has been a record-breaking week. So, let us see how we close it out in the last session.

Nifty has now next resistance at 5040. Tommorow market may be volatile , their is a chance of big selling Pressure tommorow.