Bulls cheer as RIL powers big gains in Sensex. What analysts say – Mint

Indian markets closed higher today, powered by a rally in Reliance Industries (RIL) that drove the share prices of the conglomerate to record highs. Mukesh Ambani-led Reliance closed 7.1% higher and became the first listed Indian firm to cross $200 billion in market capitalisation after reports of potential investments from Middle East funds and Amazon.com Inc in its retail arm.

The blue-chip NSE Nifty 50 index closed 1.52% higher at 11,449 while the Sensex surged around 650 points.

The Nifty Bank Index closed 0.89% higher. The Supreme Court today deferred hearing a case on waiving interest rates on loans under a moratorium.

“Reliance was the star of the day accounting for a very large part of the Nifty gains. The rally will have to be more broad based for it to sustain,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

Here is what analysts said on today’s market performance:

Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments

“We have kept above the 11450 levels today – we need to see if we can get past this tomorrow as this is a crucial resistance level for the markets. If we are unable to go past this tomorrow, we could revisit the 11200 levels. If we cross it, we could move higher as the bear trades would then be stopped out and the bulls would take over.”

Vinod Nair, Head of Research at Geojit Financial Services.

“Indian indices again had a strong showing today backed by strong gains in the shares of RIL, which alone contributed to more than half of the gains seen on Nifty. Suitors lining up for potential stake sale in reliance retail drove its gains today. Positive global cues also played a part in the broader positivity seen in the markets. Investors seems to have kept the simmering border tensions on the backburner for now and, in the absence of fresh triggers, will look at global markets and stock specific news for direction”.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

“Today’s sustainable upmove could be a cheering factor for bulls to resume their participation. Unless the upside area of 11500-11550 is crossed decisively on the upside, the selling pressure can’t be ruled out from the highs in the next few sessions. Immediate support is placed at 11360.”

Ajit Mishra, VP – Research, Religare Broking Ltd

“Apart from the global cues, participants will now be closely eyeing the upcoming macroeconomic data viz. IIP and CPI data for cues on economic recovery. Besides, the on-going tensions between India and China would also be on investors’ radar. We may see a further rebound and Nifty could take a breather around 11,520 levels. Traders should prefer stocks that are participating in the move rather than betting on underperforming counters in anticipation of a rebound.” (With Agency Inputs)

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