July series started off with a positive note on Monday as Sensex rose by 182 points and closed at one-month high of 19,577.39 while Nifty closed 56.65 points up at 5,898.85.
Sensex on Monday got its strength from Realty Index which rose 5.26 per cent, Capital Goods rose nearly 3 per cent with hopes of bagging new orders and Power Index also closed 2.77 per cent up on the news of Government agreeing to raise natural-gas prices. IT & Tech were the only two sectors that closed in negative on fears that Infosys may scale down its FY'14 revenue guidance.
Banking Index continued its recovery as Monday was the last day for NBFCs to file in for the banking license and in total of 26 companies have applied. Going forward, experts believe, this will lead to rerating of the entire banking sector and will turn out to be positive going forward for the sector as its exposure will increase into rural India.
On global front, European Markets carried the momentum and opened in the green. Even after the bad data from China, European markets performed on the hopes that in Thursday's ECB meeting, interest rates and stimulus will be kept unchanged.
Now all eyes are fixed on how the US markets will performIJ Will it carry the momentum from the global markets or act under pressure due to the disappointing PMI dataIJ Factory orders data will be also released on Monday and the market expect it to rise to 2 per cent MoM.
Analysts from BNP Paribas & Anand Rathi Securities believe markets can open flattish to positive on Tuesday and Nifty can test the immediate resistance level of 6010. Also they added, markets closed above 200 DMA in the last 2 consecutive trading sessions and believe that this a positive sign for the markets in the short term.
But, they also expressed concern as the Sensex has already showed a strong rally of over 1000 points in the last 4 days and going forward in the week experts feel this rally may not sustain.