Nifty moves above 7,900; IT stocks gain

Nifty moves above 7,900; IT stocks gain
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Highlights

Market moved upward on Friday in a highly volatile trading session expecting a higher sovereign rating outlook by the global rating agency S&P following foreign funds 0picking Indian bonds worth over Rs 16,000 crore in single deal on Thursday.

Mumbai: Market moved upward on Friday in a highly volatile trading session expecting a higher sovereign rating outlook by the global rating agency S&P following foreign funds 0picking Indian bonds worth over Rs 16,000 crore in single deal on Thursday. The market is boosted by gains in banking and IT stocks. Nifty hit record high on closing and the index settled about 7,900 mark for the first time.

Also, Sensex reaches 26,419 points at close registering a gain of 59 points. However, overall the market breadth indicates the market was negative. The RBI's announcement of tightening norms relating to lending against shares may curb leveraging of positions by traders.

According to analysts, mid-caps out-performed thus showing greater interest from retail players. The sentiment is firmed up among the individual investors considering reduced geo-political tension and expectation of future growth. While Hindalco is the best gainer with 2.36 per cent raise, software stocks like Infosys gained 1.65 per cent, TCS 1.22 per cent, Wipro 1.19 per cent. In banking space, SBI, Axis Bank, HDFC Bank reported heavy buying activity.

Caution at higher levels
Nifty closed with nominal gain (8th gain in the last 9 trading sessions) and closed above 7900 mark. Week too closed with reasonable gain (second weekly gain). Stop loss for Nifty long positions may be continued at 7850 on close basis. Nifty spot is expected to encounter resistance at 7955, 7990 and find support at 7875, 7840 for Monday. Fed statement on Friday would influence Monday’s opening. While global cues and funds flow are expected to guide the market based on the present market condition. It may be expected that the market can be generally better in the forenoon and could experience profit booking in second half of the day. — Dr B Amaranatha Sastry

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