The Sensex opened at 50,000 today morning, which no one can even dream about a year ago. The current market is a liquidity-driven rally. We all witnessed a significant rise and fall of the Sensex as the news of the fire in a COVID vaccine facility spread out. Also, profit-booking drags Sensex 167 points down from the 50K mark.
“What a day for Sensex to hit 50k…21st Day of the 21st Year, of the 21st Century! However, we believe this is more of a mental milestone but an important one. Since booking the profit is better than looking at the profit, we advise to take some profits around Nifty 14,800/15,000 levels & keep portfolio’s hedged,” said Rahul Sharma, Head-Technical and Derivatives Research, JM Financial Services.
Market at a glance:
- Reliance Industries gains 3% ahead of earnings scheduled on Friday
- Bajaj Finance gains 3% after Q3 show, Bajaj Finserv 1%
- India VIX climbs 3% as volatility rises reflecting nervousness
- All sectors ended in the red, Nifty PSU Bank top sectoral loser
- 281 stocks hit 52-week highs: L&T, MRF, Siemens, Voltas, TaMo, Havells and Bosch, and Bajaj Auto top names
What is the best advice for the current market?
After some small correction in the last few days, this trend reflects a strong position in the Indian market. The market entered a super-cycle for Indian equities. There is a high possibility of decisive reforms from the government, accelerated earnings growth, and a continued liquidity flow chasing growth, in a period of weakening US Dollar.
As an individual investor, everyone has some specific financial goal. If this situation satisfies your long-term goal then go ahead with this flow. For the rest of the market participants, who hold equity stocks or mutual funds, this is the best time to analyze your portfolio to ensure quality. Re-investing in good quality holdings can help you a lot because market prediction is difficult in this situation.
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