With BSE Sensex hitting record high of 40,345 and Nifty topping 11,900, investors seek a strategy to go ahead in such a rally.
With BSE Sensex hitting record high of 40,345 and Nifty topping 11,900, investors seek a strategy to go ahead in such a rally. Even as the surge continues for the fifth straight trading day, stock markets are expected to see profit booking anytime soon, said analysts. So, the investors should plan accordingly on how to go ahead. “Going ahead, I expect some profit-taking at current levels anytime soon. With Sep and Oct, both series added, NIFTY is close to over 1000 points up. Any relentless rally with few of the short term indicators mildly overbought may not be healthy,” Milan Vaishnav, CMT, MSTA told Financial Express Online.
Sensex surged over 293 points to hit its record intraday high of 40,344.99 on Thursday led by a rally in index heavyweights Infosys, SBI, HDFC Bank and TCS. The top gainers in the Sensex pack included SBI, Infosys, Tata Motors, Yes Bank and Sun Pharma, rising up to 4.35 per cent. On the other hand, M&M, Tata Steel, TechM, PowerGrid and Axis Bank fell up to 1.09 per cent. The investors can look at consumption, FMCG, autos and infrastructure stocks going ahead, Milan Vaishnav, CMT, MSTA also said.
“There are several factors that are helping the market upmove which include strong rally in the US markets, a decent results season, low-interest rates and improving liquidity, government actions, expectations of a rural recovery going forward and strategic disinvestment newsflow. The markets are likely to consolidate and move up further. The retail investors should stay put in the markets,” investment advisor Sandip Sabharwal told Financial Express Online.
The bourses picked up substantially on Tuesday after the report that the government will cut long term capital gain tax, dividend distribution tax, and the securities transaction tax.
“The rally is likely to continue further. With an additional economic boost by the Government in terms of tax, the consumption and auto space will pick up momentum. Metals and pharma sectors can also be looked at from a valuation perspective. Broader markets too saw some green offshoots after over a year’s decline which further aids our conviction of an upward movement by Sensex,” Umesh Mehta, Head of Research, Samco Securities told Financial Express Online. The investors must be watchful as there are a lot of uncertainties on the trade and Brexit front and even a small blip can cause a brake on this rally, he added.