The 50-share Nifty index has rallied over 300 points so far in September, supported by both domestic as well as global factors. On the domestic front, sharp appreciation in home currency against the US dollar fuelled bullish sentiment after the new central bank Governor Raghuram Rajan announced plans to stabilize the rupee and restore confidence among investor community. On the global front, easing concerns about a potential Western-led strike on Syria, fall in crude oil prices, upbeat global macro-economic data spurred optimism.
Tracking the momentum, the Nifty rallied from 5471.80 levels observed on August 30, to 5850 levels recorded intraday on September 10. The index scaled past its 200-DMA which was placed around 5834 levels.
Most technical analysts are of the view that the rally that we witnessed so far in the month of September was largely on account of short covering as sentiments turned bullish after the RBI announced measures to stem rupee's fall against the US dollar.
The rupee also managed to bounce back tracking gains in equity markets. The rupee rose to a two-week high as receding geopolitical risks from Syria and strong exports in August helped lift the sentiment.
The Nifty index rises past its key psychological level of 5850 and 200-DMA in intraday trade on Tuesday, to touch its highest level seen since August 1.
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