After about 45 sessions, the market gave a breakout and the Nifty closed above 16000. Now the big question before the investors is whether this rally will continue in the market or should they focus on booking profits at the right time.
Will the market continue to rise or will there be profit-booking, know the opinion of experts.
What should investors do now: On Tuesday, the stock market set a new record. With a gain of 245 points, Nifty crossed the level of sixteen thousand for the first time and closed at 16130. After today’s rally, some traders have got almost eight times return on their investment within a day. For a long time Nifty was trading in a range and again and again it was returning from the level of 15900. It has finally given a break out today.
On Monday it did not seem that Nifty would create history on Tuesday. According to the report published in Economic Times, there has been a jump of about 750 percent in the premium of call option in option trading after the Nifty Fifty touched the level of 16000. The premium per contract for this strike price is Rs 157.45. Accordingly, if a trader would have taken 1 million contracts for a strike price of 16000 on Monday, then his investment of 1.9 crores would have become about 16 crores today.
Global factors weak, yet the market remained strong
Sneha Poddar, Assistant Vice President, Motilal Oswal Financial Services, said that in the beginning of June, there was a good rally in Nifty. Global factors were not positive, yet the market was bullish. He said that if this bullishness in the market continues, then Nifty can go up to the level of 16400.
Break out came after 45 sessions, estimated to reach 16400
In a report published in Money Control, Chandan Tapadia of Motilal Oswal Financial Services said that the market is showing strength on a technical basis. After 45 sessions, the market has broken its range. The support level continues to rise. In such a situation, the first target will be of 16250 and after that the target of 16400. Kunal Parar of Choice Broking says that in the short term there is every possibility of the market rally and it can go up to the range of 16300-16400. In the medium term, it can reach the level of 17500. If sellers dominate here then 15750 is a good support. On its downside, a very strong support remains at 15450.
Banking index must perform well
Ajit Mishra of Religare Broking says that technical indicators are strong. It is important for the banking index to perform strongly. This will determine the direction of the market. He has predicted the Nifty to reach 16300 easily. Let us inform that in July, FPIs (Foreign Portfolio Investors) pulled out about Rs 7500 crore from the market. Whenever it has picked up, they have booked profits. In such a situation, market experts are advising retail investors to invest and trade carefully.
Also read, Gold price today: Today gold became cheaper for the second consecutive day, know how much you are getting for 10 grams
Also read, LIC’s Jeevan Lakshya Policy: On depositing monthly amount of Rs 3810, you will get full 27 lakh rupees, know how
.