Indian stock markets hit another high today as the Nifty 50 index crossed the 17,400 level, while the Sensex jumped over the 58,500 level, driven by a rally in Reliance Industries and positive global cues. Asian markets mostly jumped today after a disappointing US jobs report, raising hopes for the Fed to push for easing its stimulus measures. India’s stock market has outperformed its Asian peers so far this year. Nifty has risen nearly 25% this year on expectations of strong economic recovery, abundant liquidity and positive global cues.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, says sustained DII investments and active retail buying can provide flexibility to the market even at higher valuations. He advises retail investors to ride out the bull market while investing with occasional partial profit booking.
“The ideal strategy in this bull market is to invest with occasional partial profit booking and transfer some of the profits to fixed income,” he said.
Echoing Vijayakumar’s views, Rahul Sharma, Co-Founder, Equity99, says: “The markets are scaling new heights daily, driven by a rally in blue-chips. After such rally the markets need some cooling as they cannot go up. Investors can partially book their profit at current levels. We are still bullish in the long term but we expect some consolidation in the near term.”
“We advise traders and short-term investors to place strict stop-losses on their positions and continue to book profits at certain levels. On this current position, Nifty has strong support at the level of 17300, if broken then the next support is placed at the level of 17225 and 17100. On the upside 17500 is a barrier and if we close above 17500 then 17800 will act as resistance.”
On the other hand, Bank Nifty, which is underperforming Nifty, has strong support at 36500 – 36200, said Rahul Sharma.
“Similarly on the upside 37200 will act as a barrier, once we close above 37200 then expect Nifty Bank to move higher towards 38000.”
Oil-to-telecom conglomerate Reliance Industries was the top gainer in Sensex shares today, rising 3.8% to record highs. The stock is set to climb for the fourth consecutive session.
Analysts say the US non-farm jobs report – just 2.35 million jobs added in August, up from 7 million expected – supports the Fed’s claim that it was “to cover up” before revising rates. There is too much land”.
“Hence, the expected tapering by the end of this year is also likely to be a ‘taper without tantrum’. The dollar index hovering around 92.16 is likely to support fresh FII inflows. This will provide flexibility with continued DII investments and active retail buying. in the market even at higher valuations,” said VK Vijayakumar, chief investment strategist.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.