Markets rally: Is it time to book profits?
The benchmark Nifty rallied for third consecutive day and closed at 30-month high, led by buying interest in technology, financial, realty, metal and select capital goods companies’ shares.
It was the highest closing for Nifty since February 5, 2008. Index touched psychological 5400 level and Sensex tested 18000 mark in an intraday trade; this rally was led by oil & gas stocks while metal companies’ shares underperformed.
But profit booking & disappointing industrial production numbers wiped out about 73 points from day’s high of 18010.07 and 23 points from Nifty’s day high of 5402.70.
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Is it time to book profits?
Mehraboon Irani, VP, PMS, Centrum Broking says that the markets are poised to surge higher. However, he warns that correction may come. According to him, there is enough liquidity to push the market higher and that gives all the reason to remain invested in the market.
Despite not being affected by the disappointing IIP numbers, the markets may be troubled by other issues. He explains that markets may be buoyed down by corporate earnings and monsoon may also play the dampener.
On an optimistic note, Ashwani Gujral, Technical Analyst says that it is possible for the markets to cross past 5400.
Gujral explains that given the fact that so many groups in the market are hitting fresh intermediate highs, something like the banking index is now moving passed its intermediate highs, tech is doing that, large stocks like Infosys, HDFC Bank are moving out to new highs that means the market has strength but still the next 100 points is likely to have a lot of sneaks.
“Once next 100 points are taken out then you would breathe little easier and then the next 300 points are likely to be easier than the next 100 points,” Gujral points out.
source : Money Control
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Category: Stock-News
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