Massive, huge, big, large, heavy, and solid, all adjectives would fall short to describe the performance of Indian Stock Markets in May 2014. Markets cheered the coming of a new government by reaching lifetime highs. Almost all the sectors participated in the rally. As per Fibonacci levels, the next resistance can be at 7615 levels on the Nifty Spot. On the downside, 7020 and 6890 are good demand zones.
We are now in uncharted territory. Although markets touched the all-time high, on the same day profit-taking was at higher levels. Further, events such as the RBI policy and other reforms would decide the course for the markets, going forward. Banks and most of the PSU stocks led the rally. We can expect some profit booking in these stocks.
Sector wise for this month, IT, Pharma, and FMCG could be the outperformers in the coming days. From the IT space, Infy and Wipro and from the Pharma sector, Cipla and Ranbaxy are the favorites.
Written By: Sumit Jain
Equity Research Desk
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