Just when it looked like the bears were going to have their day on Dalal Street Wednesday, the bulls proved it wrong yet again with the Sensex and Nifty 50 extending gains to the 7th straight session and hitting all-time highs.
The 50-stock Nifty closed 0.8% higher at 18,758.35 points and the 30-stock Sensex settled 0.7% higher at 63,099.65 points. In 7 sessions, indices have gained more than 3%.
This is the second time in 2 months that indices have gained for 7 consecutive sessions. It last happened in the October 14-24 period, when indices added over 4% gains.
The question now is whether bulls can pull it through to the 8th session and help the market make a record on this front as well in 2022, or will the bears turn lucky?
The view on the Street is mixed.
Some analysts feel it is difficult to predict whether markets will continue their winning streak on Thursday, though there are no signs of panic even at current levels.
“There are three factors playing out, which tell me that there is no panic in the market even at such higher levels,” said Raj Deepak Singh, head – derivatives research at ICICIdirect.
“Volatility is at its lowest level in several months. Secondly, there are no leveraged positions visible in Nifty 50 stocks, both in value and volume terms. And thirdly, the market has seen good FII flows on the back of MSCI adjustments,” Singh said.
Whether indices will extend gains to the 8th session is difficult to predict, but Singh expected some profit booking to kick in, and would be a buyer at 18,500 levels of Nifty 50.
Even Shrikant Chouhan of Kotak Securities expected some profit booking at higher levels as intraday charts suggested that the market is in an overbought zone.
But, Rupak De, a senior technical analyst at
, was of the view that as long as the Nifty50 holds above 18,600 and the support base keeps moving higher, the trend for the market remains bullish.
He saw chances of the Nifty50 testing 18,800 level, but might face some resistance there.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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