Nifty hits all-time high at open on BJP's UP win; rupee at highest level since April 2016

Benchmark indices surged at opening as investors cheered BJP’s stunning victory in Uttar Pradesh assembly elections, which gives it room for adding more representatives in the Rajya Sabha. BJP won state elections in four out of five states that went to polls indicating that the popularity of Prime Minister Narendra Modi was still intact. Both indices rallied by about 2% with Sensex surging as much as 615 points during the early trade while the broader Nifty50 hitting the record high of 9,123. At 9:17 am, the S&P BSE Sensex was trading at 29,481 up 534 points, while the broader Nifty50 was ruling at 9,091 up 157 points. The broader market was trading inline with the benchmark indices with BSE Midcap and BSE Smallcap up 1.5% each."Expect to see this Nifty moving towards 9,400 – 9,600 (price extension of previous up move from recent low of 7,893.80) over the next few weeks. We would reiterate that the trend is strong and hence, one should look to utilise intra-week dips to create fresh longs rather than getting worried about the overbought condition of the market," said Angel Broking in an note. Commodity Trading Tips

The poll results will also boost the sentiment of foreign and domestic investors, who read this as a sign of political stability beyond 2019, when there will be fresh Lok Sabha elections. In UP, the party won its biggest margin in 37 years with a three-fourth majority. The rupee, which had earlier slid against the dollar amid increasing investor attention on the US, strengthened up to 66 against dollar. The currency closed at 66.61 on Friday and opened today at highest level since April 2016. On Friday, foreign portfolio investors (FPIs) bought shares worth a net Rs 412.14 crore, while Domestic institutional investors (DIIs) sold shares worth a net Rs 13.91 crore, provisional data available with BSE showed. Meanwhile, the wholesale price inflation (WPI) data for February will be released later in the day. The inflation for January stood at a 30-month high of 5.25%. The wholesale price index (WPI) based inflation in December stood at 3.39%. Nifty Trading Tips


Sectors and Stocks
 
All stocks on the indices were trading in green - ICICI Bank, M&M, HDFC and ITC were the top gainers on BSE Sensex. Adani Enterprises gained 2.55 % after the company applied for financing from an Australian infrastructure fund to build a rail line that is part of a $16 billion coal project in the state of Queensland. Future & Option Trading Tips