Friday, March 29, 2024
ED TIMES 1 MILLIONS VIEWS
HomeFinanceDalal Street to go on high speed yatra on BJP's victory

Dalal Street to go on high speed yatra on BJP’s victory

-

nse

MUMBAI: Stocks may rise on Monday and stay buoyant for the rest of the week after voters weary of price rise and corruption punished Congress in four key state elections, handing BJP a major boost ahead of 2014 polls.

Brokers and analysts believe the victory will boost stocks though the upside may be capped by fears of the Fed slowing down its stimulus programme. “Markets may have a gap-up opening of around of 2-5% on Monday,” said Motilal Oswal, CMD of Motilal Oswal Financial Service.

 

“More than short term, it’s good news for the markets in the long term.” Capital goods and power equipment stocks may gain as investors believe a new government will push through business-friendly policies. Derivatives data from Friday showed maximum open interest in Nifty’s 6400 strike followed by 6500 strike call options.

The level of call option writing at this level indicates bullishness, said Amar Ambani, head of research at IIFL. “The Nifty may test the 6500 mark if the index breaks 6310. Traders have built heavy positions in 6300, 6400 and 6500 call options during the last week,” he added.

On Friday, a day after exit polls predicted a triumph for BJP, investors built positions in the 6300, 6400, 6500, 6600, 6700 and 6800 call options. Derivative traders said this suggests a section of investors is betting on the Nifty to touch even 6,800 levels.

 

“Nifty may touch 6400-6450 (but) concerns over tapering and the ongoing divestment programme could impact liquidity and limit upside gains,” said Deven Choksey, MD & CEO, KR Choksey Shares and Securities.

 

Source: http://economictimes.indiatimes.com/markets/stocks/market-news/dalal-street-to-go-on-high-speed-yatra-on-bjps-victory/articleshow/27099946.cms

 

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Must Read

Explore Modern Trends: Double Charge Tiles for Commercial Spaces

If you are someone who is exploring different tile options for installing in your commercial spaces, we have the perfect recommendation for you. These...

Subscribe to India’s fastest growing youth blog
to get smart and quirky posts right in your inbox!

Enter your email address:

Delivered by FeedBurner