Stock market will continue to move up

K. ARAVIND

Last week saw the stock market move to new heights. The Nifty set a new record of 13,000 points for the first time. At the same time the market was volatile. It also saw strong sales on some days. However, the market was able to maintain its overall upward trend.

Global indications reflected in market volatility. Liquidity is the key factor driving the market. More than Rs.50,000 crore was invested in the Indian market by foreign investors in November. For the first time in the history of the Indian market, foreign investors are investing this amount in a month.

The banking, metal and auto sectors were the major contributors to the market growth last week. The increase in vehicle sales during the Diwali season was the main reason for the rise in auto shares. Auto companies will release vehicle sales figures for November early next month. Expecting a strong rise this month has led to a rise in stock prices.

Banking stocks are technically out of a break. This was reflected in banking stocks last week. Rising global metal prices also weighed on stocks in the region.

The Nifty overcame a resistance of 13,000 points to close at 13,600. In case of market correction, it is supported at 12,400.

Nifty Bank Index has crossed the 29,100 resistance and the next resistance is at 32,000 points. It is supported at 28,000. The Reserve Bank’s monetary policy review meeting is scheduled for next week. The decisions taken by the RBI at its meeting on December 4 will affect the market.

Although there exists a trend for surging ahead, the market is likely to move within a certain range. Strong ups and downs are unlikely.