Nifty clocks 8 record intraday highs this year
Sustained DII buying assisted by retail exuberance neutralized impact of FII outflows
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New Delhi: With eight days of record intraday highs this year, Nifty is exhibiting great strength, says VK 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.
