Street Signs: Markets stretch their legs, May 12's phantom rally, and more

While secondary markets have wavered, primary markets have been largely dormant over the past three months, with only one initial public offering (IPO) from Ather Energy

Markets stretch their legs: The sprint isn’t over yet

 

The Nifty benchmark jumped more than 1,000 points (4.2 per cent) last week, gussied up by positive developments, including the Pakistan ceasefire ‘understanding’, renewed hope for a US trade deal, and expectations of further Reserve Bank of India interest rate cuts. The 50-share index closed at 25,020, positioning itself for a possible advance towards 25,500. Technical analysts see last week’s gains and broad sector support as signs of a bullish trend. Key indicators include the relative strength index staying above 60 and India Vix dropping nearly 23 per cent to 16.55.