Mumbai: After rather a flattish trade on Monday, the market performed well on Tuesday as the Sensex crossed another signpost – 14,000. This is the first time the Sensex has hit five milestones in a single year. That definitely says a lot about the fundamentals of this market.
As we proceed, what do the cards have in store for this market? Will we see 15,000 first or a correction? Experts reveal.
The vibes continue to be bullish. Even at these levels, the optimistic mood is maintained. While analysts do expect a few healthy corrections along the way, by and large the street believes that the Sensex will touch 15,000 level before 13,000.
Less than a month ago there was rejoicing as the Sensex crossed 13,000. A few days back the Nifty conquered 4,000 points. As this Bull Run advances, certain performers come to the limelight.
Stocks like Zee, SBI, Reliance Communications, NTPC, ICICI and Bharti were amongst the largest gainers in the rally from 13,000 to 14,000 points. Metal and oil stocks remained underperformers; stocks like HPCL, BPCL, Nalco, Hindalco and TISCO. However, the fact that the midcap participation has recently begun is quite encouraging.
Coming back to the fundamentals, Surjit Bhalla of Principal O(x)us Investments draws comparison between India and Japan. He says, 'We are beginning to see in India what happened in Japan in the 60’s, and that was all the commentators, all the economists and all the analysts forecast the economy and the economy turned out to do better than their assumptions. I think that’s the zone we are in, vis-à-vis the Indian economy where it is surprising all of us and it will continue to surprise us.'
Technical analyst Rajat Bose says while the bullish trend is certainly going to continue, there is some amount of profit booking taking place as well. When quizzed about whether the Sensex will reach 15,000 or 13,000 first, he says, 'I would say 14,400 first then 15,000 or say 13,000.'
Investment advisor PN Vijay is very positive that the Sensex will mount 15,000 peak by the new year.
With the Index rising about 2 per cent a week, technical analyst Deepak Mohoni says as long as the rally continues from here, 15,000 is not much of an obstacle. However, since this rally has lasted really long, there could be a reversal according to him, but there are no signs of that yet.
While a majority of people are excited about the market, Ganesh Shanbhag of SMS Financial Services says some amount of caution should come in now as he expects profit booking by FIIs to take place round the second or third week of December.
As most of those who are invested would want to ride the rally, the skeptics who didn’t join in are praying for a correction.
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