The S&P BSE Sensex gained momentum after a gap-up start and reclaimed its crucial psychological level of 28,000 on Tuesday. The rally was led by gains in HDFC Bank, Infosys, ICICI Bank, ITC, Maruti Suzuki and Sun Pharma. The Nifty50 broke past its crucial resistance level of 8,700, supported by gains in realty, power, oil & gas, consumer durables, capital goods, banks, and auto stocks. The following are main four reason why Nifty and Sensex are crossing 52 week highs
Doubt over Sept Fed rate hike: After a positive handover from the US markets, Asian markets began on a positive note as doubts resurfaced about a possible rate hike by the US Federal Reserve in September. August payrolls report on Friday might miss expectations and make it that much harder for policymakers to contemplate a September tightening, suggests a media report. And, even if Fed hikes in September, it would not be catastrophic. Technical check: The Nifty50 bounced back from its immediate support level of 8,540 to reclaim its crucial resistance level of 8,700, which is a bullish sign. The Nifty50 managed to hold its immediate support of 8,540 zone, which is the 23.60 per cent retracement of the recent up move from 7,927 to 8,728 level.
Bull run intact, says Jhunjhunwala: India is still in the midst of a bull market and intermediate corrections are part of such a bull market. The good thing is that India is still in the early stages of a bull market, said ace investor Rakesh Jhunjhunwala. "We are in the initial stages of what I think is going to be a bull market, which is going to make us forget 2003. The market has gone up from 6,800 to 8,800-8,900 in the last four-five months and we could correct any time but it is my opinion that even if the market corrects, it is going to correct time wise more than price wise," Jhunjhunwala, partner, Rare Enterprises, said in an interview. Liquidity tap still open: Global liquidity is one factor driving up the market higher, said experts. So far this year, FPIs have invested Rs 39,905 crore in equities while they withdrew Rs 7,450 crore from the debt market. This resulted in a net flow of Rs 32,455 crore.