Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty advanced for the seventh straight day to log the best stretch of gains in 11 weeks and touched the all time high level of 20,000 on Sept 11. At close, Nifty was up 0.89% or 176.4 points at 19996.4. Volumes on the NSE were on the higher side compared to recent average. Midcap index rose more than the Nifty even as the advance decline ratio rose to 1.23:1.
Asia stock markets started to turn positive later on Monday in a burst of risk appetite even though investors in China sold off shares in property developers, remaining unconvinced by authorities' efforts to revive activity in the mainland real estate market. European stocks traded higher on Monday after the latest inflation data from China fueled optimism about easing deflationary pressures in the world's second-largest economy.
The head of the Bank of Japan hinted at an eventual shift away from negative interest rates. China had its smallest drop in factory prices in five months. The producer price index fell 3.0% from a year earlier, in line with expectations, after a drop of 4.4% in July.
Net investments into actively managed equity schemes in India increased more than 2.65 times month-on-month to Rs 20,245.3 crore in August. SIP contribution to mutual funds industry in August stood at Rs 15,813.5 crore, compared with Rs 15,242.7 crore in July.
Nifty made a bull candle on Sept 11 and showed an upside breakout. However the markets seem overbought and as per fibonnaci numbers, Sept 12 could be a turn down day after Nifty rose for 7 straight up sessions. On upmoves Nifty could face resistance at 20090, while 19867 could provide support in the near term.