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Journalism of Courage
The 336-point rally in the benchmark Sensex in the last 14 days has raised many questions among the investors and dealers. Will the rally continue in the current week?
After staging a 72-point rise on Friday to 5,370.05, the Sensex has now come closer to a technical resistance level. ‘‘The market may face resistance at the 5,400 level. Sensex has been going up and up in the last two weeks. It has to come down to realistic levels,’’ said a BSE dealer. Last week’s 152-point surge in Sensex was driven by gains in frontline and index heavyweight stocks such as Infosys Technologies, HLL, ITC, HDFC, Tisco, Reliance Industries and SBI.
Moreover, RBI has hiked CRR in a bid to rein in inflation. ‘‘But this move could put an upward pressure on interest rates. The market is looking at the latest RBI move with circumspection,’’ said a fund manager.
A recent spike in annual wholesale price inflation, which crossed 8 per cent for the week ended August 21, raised prospects of an increase in interest rates. ‘‘If the market ignores all these developments and rallies further, there’s something wrong. It would also means that some vested interests are manipulating the market,’’ said an NSE dealer.
Mid-cap stocks had witnessed a phenomenal rally in the last two months. Many fund managers said small investors should book profits in mid-cap stocks and that they should exit at every rise and buy at major declines.
