Stock market today: Anil Singhvi reveals 3 reasons that will fire-up shares; Nifty may hit 11,500-mark

Stock market today: Amid Indian stock market today inching towards 11,500-mark and the US markets recovering losses due to Coronavirus and trade tensions with China, Zee Business Managing Editor Anil Singhvi has some tips for investors on where indices are headed. Importantly, the Market Guru said that this northward trend will continue as there is ample liquidity available in the market. 

Singhvi said that currently stock market is at the highest levels post-March 2020 selloff because it's a broad-based rally. Notably, Singhvi pointed out three reasons that will continue to fuel Indian stock markets and those three reasons are:

1. Broad-based rally
2. No specific stock is a leader
3. Ample liquidity.

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Broad-based rally

Highlighting the benefits of broad-based rally, Anil Singhvi said, "Today, stock market indices are at the highest levels post-March 2020 selloff and all sectors are participating in this rally. All sectors including mid-cap and small-cap stocks have supported this rally and that is being reflected in the positive sentiment of both DIIs and FIIs. Hence, I won't be surprised if the NSE Nifty hits 11,500 today itself."

No Stock is a Leader

The Market Guru said that those days are gone when Reliance Industries or TCS would decide the fate of stock market. Today, if one sector gets hit, then another sector comes to the rescue of the market. That's why when we look at the sectors, we would find that post-March 2020 selloff, it was Pharma that came to the rescue and pull-back in the market. Then, auto, metal and other sectors slowly but steadily started showing positive bias and then small-cap and mid-cap stocks also started to move upside.

Singhvi said that it has helped the markets to move up even when Reliance Industries or TCS shares got hit by a massive selloff.

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Liquidity is key

Highlighting the impact of liquidity on the markets, Singhvi said, "Market is still bullish because there is ample liquidity and that is getting reflected in the high volumes of trade. So, one should keep increasing the target by 100 points as and when the NSE Nifty breaks its immediate resistance."

Anil Singhvi said that currently, NSE Nifty has strong resistance at 11,500 and if it manages to break this resistance then the next target will be 11,600 and one should keep on adding 100 points on each resistance breakage.