Stock markets breached their all time highs on Wednesday on positive vaccination views, falling coronavirus cases in India and economic revival. The BSE Sensex ended at 46,103.50, up 494.99 points or 1.09%. The NSE Nifty index closed at 13,529.10, gaining 136.15 points or 1.02%on Wednesday. Analysts believe while the prospects for Indian stock market are bright and the index may breach these levels as well, this is the right time to book profit.
“Our stock markets reached yet another milestone of 13,500 with ease and banking as well as Reliance were the major charioteer of the move today. Since we are in an uncharted territory, sky’s the limit for our market; but in our sense, we have now reached the extreme most zone, at least for the current vertical move. With a broader view, 14,000 and beyond levels are very much possible, but for a time being, 13,500 – 13,600 are the extreme levels as per few fibonacci ratios,” says Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.
As the domestic market opened on Wednesday, the global set up was just ideal to have yet another gap up opening at fresh record highs. Subsequently, index went into a consolidation mode for the remaining few hours. But the buying momentum accelerated at the stroke of the mid session to conclude the Nifty convincingly above 13,500 by adding another percent to the bulls’ kitty.
Chavan believes there is no harm in being little conservative in this stock market.
He says, “We agree to the fact that a strong trend up or down, doesn’t necessarily follow any theory. But there is no harm being a bit conservative at times. Hence, since the last 3 – 4 days, we have been continuously advising booking profits in the rally and avoiding aggressive bets overnight. As far as support levels are concerned, 13449 – 13375 would now be seen as key points.”
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