Equity benchmarks Sensex and Nifty rallied to fresh lifetime highs on Tuesday following broad-based buying interest amid persistent foreign capital inflows. Progress on a COVID-19 vaccine also spurred hopes for a faster economic recovery, leading to positive sentiment for equities. The Sensex rose as much as 495 points to an all-time high of 44,571.96 and Nifty 50 index surged to record high of 13,079. Banking shares led the rally in Tuesday’s session as the index of banking shares on the National Stock Exchange – Nifty Bank index -rose over 600 points.
On the vaccine front, AstraZeneca’s encouraging interim results for its COVID-19 shot were followed on Monday by manufacturer Serum Institute’s announcement that it would focus first on supplies to India, raising hopes that the vaccine could become available quickly in the world’s second worst-hit country.
Meanwhile, Hemang Jani, head – equity strategy, broking & distribution at Motilal Oswal Financial Services advised investors to book profits partially and sit on 15-20 per cent cash in their portfolios.
“At the current market levels, it is advisable to partially book profits and sit on 15-20 per cent cash in the portfolio. Any corrections in the market can be used to deploy funds at lower levels,” Mr Jani said in a note to clients.
He however added that in the near term, the Nifty 50 index can move up to 13,200-13,400 levels as the overall sentiment is strong and market outlook is positive, going forward.
“The overall sentiments are strong and the market outlook is positive, going forward. If the foreign fund inflows continue, we can see higher levels on Nifty in coming days/weeks. Nifty can possibly touch 13,200-13,400 levels also. But it also depends on the sustainability of the economic growth over the next few months post festive season,” Mr Jani said.
HDFC Securities in a research report is also positive on the markets and expects Nifty to trade in a range of 13,100-13,200 in the next seven trading sessions.
“Our 3-7 day targets are 13,100-13,200 as the Nifty has reversed its recent downtrend on the intraday timeframe and we therefore expect more upsides in the coming sessions,” HDFC Securities said in a report.
“Our bullish bets for next 7 days are off if Nifty dives lower and moves below the recent swing lows of 12,730,” HDFC Securities added.