Indian share markets benchmarks BSE Sensex and Nifty 50 scaled fresh lifetime highs on Monday, on the back of firm worldwide cues, upbeat Q3 earnings and powerful foreign fund inflows. BSE Sensex zoomed more than 550 points to hit 52,000 for the initially time ever. Similarly, the broader Nifty 50 index surged 150 points to climb above 15,300 to make new record highs. In the post Union Budget rally, the 30-share Sensex closed above the historic 50,000-mark for the initially time on February 3, 2021. It took just two sessions to add yet another 1,000 points to attain 51,000 and a additional 5 days to hit 52,000.
What really should investors do now?
Markets cheered the CPI inflation for January and a rebound in IIP numbers. Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told TheSpuzz Online that the rally in Sensex and Nifty on the upside appears to continue for the time getting. As new positions may possibly have lesser threat to reward ratio, Wagh advised to ‘hold’ the positions with trailing cease loss beneath 15080 on Nifty. “It’s time to ride the rally; a new entry may be risky,” he stated.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, sees 500 to 1,000 points retreat in Nifty 50, as the present rally appears to be with no any meaningful correction. In the previous, anytime the industry elevated by 1,700 to 2,000 points, it had retreated by 500 to 1000 points. Chouhan believes that Nifty and Sensex can rise to the level of 15500 and 52500, respectively.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services, stated that getting has to be very stock/sector-precise. It really should be completed on a extremely selective note.
Likhita Chepa, Senior Research Analysts at CapitalVia Global Research Limited, told TheSpuzz Online that ahead of taking a fresh position, one will have to meticulously look at the prospects of the business as most firms’ stocks are trading at premiums. Chepa advised quick term investors sitting at considerable amounts of earnings to look at squaring off their positions in the current stocks. Medium- to extended-term investors on the other hand will have to look at asset allocation and rebalance portfolios according to their threat appetite. However, they can hold positions as the rally in the capital markets is anticipated to continue.
What do technical charts say for Nifty?
Nifty has powerful resistance at 15,300 in the kind of maximum concentration of Call OI for this week’s expiry as of now, says Milan Vaishnav. On technical charts, the zone of 15300-15500 appears to be a pretty stiff and powerful resistance region. Vaishnav advised that one may possibly look for profit booking in financials, price sensitive and higher beta stocks in favor of traditionally defensive sectors going ahead from right here. While on the reduced side, supports are placed at 15000 and 14850 for the instant close to term.
Given the strength of the worldwide markets and the CPI inflation figures, Nifty/Sensex can rise to the level of 15500/52500 levels, says Shrikant Chouhan. However, that could be the time to shift the portfolio from weak stocks to powerful significant-cap organizations. “We also advise our clients to keep lowering the cost value of the portfolio by making a profit on investments that are yielding windfall gains. On the downside, support would be at the 15100/51200 and 14800/50300 level,” he added.