Strong liquidity keeps markets alive
NIFTY has crossed the psychological level of 4000 and Sensex is hovering around 14000 mark. Bulls are in complete control of markets. The market feels that the ongoing rally is likely to continue on back of strong liquidity provided by FIIs and domestic funds. It has been learnt that quite a few FIIs have been registered with SEBI in the month of November and some domestic NFOs have generated huge funds and they are sitting on money ready to be invested and if NIFTY sustains over 4000 levels some short covering will also be seen, taking the market further up. The economic growth in the second quarter and other macro economic factors are weighing bullish on markets. The only negative factor may be rise in international crude prices. In case crude moves towards $70 mark again, it might result in weakness in global markets and might trigger the much-awaited correction. Even if there are corrections or dips, they may not be deep as a lot of money is waiting for the entry point by way of some deep corrections. As soon as the market falls, a lot of entry-level buyers will flood in to bring it back on track.