Opening Bell: Sensex, Nifty extend bull run on FII fresh buying; RIL, Reliance Infra stocks gain
Nifty is likely to face resistance around 11,500-11,530 zone and profit booking is advisable in this zone, advises equity market experts.
Amid looming pressure of the US Federal Reserve meeting, the FIIs continue to showcase faith in the Indian equity markets today helping Sensex, Nifty to extend its rally on sixth straight trading session. The BSE Sensex gain 85 points to 38,180 levels while the 50-stock Nifty surge 27 points to 11,489 levels. The Nifty Bank index jump 74 points to 29,670 levels. Reliance Industries and Reliance Infrastructure stocks gain.
Giving idea about the movement of Indian indices in near future Prakash Pandey, Director & Head of Research at Fairwealth Group told Zee Business online, "We are not comfortable with kind of vertical rise in the market and some consolidation/correction will be healthy for the markets and it will provide traders to re-enter better risk/reward trades in the market." He said that Nifty is likely to face resistance around 11,500-11,530 zone and profit booking is advisable in this zone, 2 days FOMC meeting will start today and we will have impact of the same on Friday on our India markets. Giving cue about the sectors Prakash Pandey of Fairwealth Group said, "Dollar Index is trading below 96 before FOMC meeting, that is positive for metals & riskier asset class like equities."
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The BSE Power and Utility index led the rally at Dalal Street on Tuesday. The BSE Power index added 1.28 per cent from its Monday close. Power major Torrent Power Ltd surge 1.3 per cent, Reliance Infrastructure Ltd skyrocketed 5.4 per cent from its previous close while CG Power and Industrial Solutions Ltd stocks gain near 0.65 per cent. The BSE Energy index went up round 0.8 per cent. Energy major and Sensex heavyweight Reliance Industries rose over half a per cent in early morning trade, shares of Asian Oilfield Services Ltd surge near 2.5 per cent, ONGC and IOCL stocks rose near 0.7 per cent while Castrol India counter added around 0.45 per cent from its previous close.
Asian stocks treaded water in early morning trade on Tuesday ahead of a US Federal Reserve policy meeting. MSCI`s broadest index of Asia-Pacific shares outside Japan was virtually flat, just a hair away from the highest level since September 21. Japan's Nikkei average dropped 0.5 percent, while Australian stocks eased 0.1 percent. All three major US indexes rose overnight, lifted by banks and tech names, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite adding between 0.3 and 0.4 percent each.
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