Market To Move Close To All Time Highs Soon !!

Markets have finally broken the shackles and have attempted to settle above the crucial support levels. Nifty closing above 10,000 levels is something that will cheer the investors. The September series began with lowest open interest in the index for calendar year 2017. However, we have been consistently observing good amount of build-up in both indices, indicating revival of sentiment among the traders. 

Sensex inched up by 1.57 per cent in the past 15 days even as Nifty gained 2.14 per cent. The broader markets out-performed the major benchmark indices in the past two weeks, with Mid-cap index gaining 3.85 per cent and Small-cap index climbing 5.08 per cent.All of the sectoral indices gained over the past 15 days, except the IT index, which delivered negative return of 1.5 per cent. 

Metal index generated 8.48 per cent returns, Realty index was up by 5.24 per cent and Bankex gained nearly 2 per cent in the past couple of weeks. 

Globally all the major indices gained over the past 15 days. Dow Jones was up by 0.88 per cent, S&P 500 by 1.71 per cent and NASDAQ by 2.07 per cent. 

European markets outperformed globally, with the German DAX being the highest gainer, climbing up by 4.43 per cent. France’s CAC40 was up by 2.88 per cent and while UK’s FTSE 100 inched up by 1.04 per cent.Asian markets underperformed its global peers, but remained in the positive territory. Nikkie gained 0.93 per cent, Hang Seng gained 0.68 per cent and Shanghai was up by 0.33 per cent.FIIs turned net sellers in the Indian markets, with net sales figures of Rs 4586.72 crore. The DIIs were net buyers in the markets during last fortnight to the tune of Rs 3619.7 crore. 

The recent GDP data reflects slowness in the growth in economy. Investors seem to be ignoring the near-term pain and focusing on the long term outlook. The geopolitical tensions emanating from North Korea and America threaten to disturb the positive momentum of the global equity markets. However, investors seemed to have already factored in the risks in the market prices. 

The liquidity-driven rally may continue and small-cap and mid-cap stocks will continue to attract investors with their higher growth trajectory. 

All eyes will now be on the inflation data and it is expected that inflation may inch up a little bit from the previous month’s level. Looking at the improving sentiment in the global markets and not ignoring the fact that the geopolitical tensions may persist, the markets at best may trade range-bound.

A breakout on higher side, though not impossible, looks unlikely and may disappoint die-hard bulls in the market. Investors should continue to focus on individual stocks and look for investing opportunities in quality stocks across market caps.