Mumbai, May 27 : In a lacklustre but two-way trade, the BSE benchmark Sensex this week closed with a small rise of 65.07 points or 0.40 per cent while NSE Nifty by 28.95 points or 0.59 per cent.
“Re fall made Indian market collapse from Nifty at 5,200 points to 4,770 this week. However, it bounced back to 4,920 points. Sensex too bounced back from a low of 15,900 points to close to 16,200.
The bold decision to hike petrol prices steeply, fuelled across the board rally on Thursday reversing the bearish tone,” CNI Research CMD Kishor Ostwal said.
“The strong reasoning of this bold decision could pave way for the much halted inflow once again. The immediate impact was also seen on Re which reversed from the high of 56.38. The undertone is definitely turning bullish but market will remain highly volatile due to settlement considerations.
Nifty might most probably breach the 4,950 mark resistance and head towards 5,070 points this week. Sensex to climb at 16,600 mark could be the first target,” he added.
“Market is eagerly waiting for some clarity on FDI in civil aviation and retail FDI and any move on this front could take Nifty to 5,150 points and Sensex to 17,000 mark, which are turning point for the market.
“I do not think global issues could really stop Indian markets if our government goes out and makes some bold decisions. In my opinion the sole factor which has restricted the conversion of savings to investments in Indian markets is the absence of physical settlement in derivatives markets. Metal sector, which has over-reacted to Re depreciation will bounce back quickly. Hindalco and Tisco look good for immediate upside,” he said.
