NSE Nifty is at all time high

The NSE nifty reached an all time high of 4269 during intra-day session. Nifty finally ended at 4261 on Monday due to massive gains in Banking, Media, Metal and Reliance stocks. Surprisingly sugar stocks also rose without any positive triggers. IT stocks suffered losses due to rupee appreciation.

Day of Reliance:

Companies of Ambani brothers are the major gainers on Monday trading.

1. Reliance Energy rose 8.5% while Reliance Industries surged 3.7%.
2. Stocks of Anil Ambani are continuing their positive momentum.
3. Oil stocks are the surprise gainers.
4. Gains in SBI and HDFC boosted the market sentiment.

Can Stock Markets sustain this rally?

Absolutely not. Indian Stock markets can’t able to continue this rally in the coming sessions as valuations are stretched a bit too much.

Why markets may not continue this rally?

1. There will be no significant positive triggers after results.
2. Rise in interest rates may affect the margins of companies in the coming quarters.
3. Investors may book profits to enter at low valuations.
4. Sectors like sugar are rising without any reason. These are the dangerous signs.
5. Rupee is appreciating against dollar. This will severely affect IT and other export stocks.
6. Companies are investing big money. It will take time to yield results for these investments.


Markets will definitely return to 13,000 mark. Investors may enter into stock markets at these levels. But some good stocks like Dr Reddy’s labs are trading at attractive valuations. IT stocks may regain their value if dollar appreciates again.

My advice is stay away from Indian stock markets. Short term investors may invest in IT stocks as dollar will surely appreciate again. Investors who will enter into share markets at this level due to media hype will suffer heavy losses especially if they invest in high valued stocks like Reliance, SBI and RNRL etc.

Please share your views on Indian Stock markets.