Seven Days of Record Intraday Highs This Year for Nifty

With seven days of record intraday highs this year, Nifty is exhibiting great strength, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The big emerging market worry of rising bond yields in the US is not impacting India since FIIs have been forced to reduce their selling since they are being completely neutralised by sustained DII buying assisted by retail exuberance. This resilient domestic buying is providing the main support to the ongoing rally in the market, and the strong performance of the economy and improving corporate earnings are solid fundamental support to the market.

The fact that the fairly valued large private banks are now contributing to the rally is a positive signal. This has the potential to sustain. But the irrational exuberance in pockets of the broader market is unlikely to sustain. Retail investors should not be carried away by this exuberance, he said.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher, said the Nifty surged ahead to make new high once again breaching above the 22200 zone during the intraday session with the index positioned strongly with further rise anticipated in the coming days. The near-term target for the index would be 22400 levels and with strength sustaining, it can march ahead to next target of 22800 levels with near-term support maintained at 22000 zone. The support for the day is seen at 22050 while the resistance is seen at 22350.

BSE Sensex is trading at 73,069.64 points, up by 12.24 points. Metal stocks are up with JSW Steel, Tata Steel up 2 per cent.