Liquidity can take the market further up for a while longer but one should keep an eye on the fundamentals and not just go along with liquidity, says market expert Ambareesh Baliga.
The bulls are back in charge and the market is climbing wall of worries and propelled the market to record highs yet again.
The 30-share BSE Sensex was up 310.77 points at 35,081.82 and the 50-share NSE Nifty rose 88 points to 10,788.50, driven by banks and IT stocks.
Although the indices are at euphoric levels, it looks like liquidity is not stopping, which is more domestic in nature, so it is difficult to time the market but fundamentals will speak for itself, says market expert Ambareesh Baliga, adding that liquidity can take the market further up for a while longer but one should keep an eye on the fundamentals and not just go along with liquidity.
The liquidity that we have seen in the last 12-18 months has not seen losses and as long as gains keep happening, the liquidity keeps coming but if and when this liquidity starts seeing losses, we don't know how they will behave. This liquidity sloshing in the market could be the safe money that was lying as fixed deposits etc., which has moved into stock markets, so one does not know how they will behave once they witness losses.
According to Baliga, it is prudent for retail to book some profits. So, one can take the capital out in the least, he adds.
Market does look overheated, says Ashwani Gujral of ashwanigujral.com and one never knows when things can turn but one must keep updating their stops. Today's low becomes a stop for all leveraged long positions and once the trailing stop loss gets taken out be ready to jump until then keep riding.
Talking stocks/sectors, Baliga says one can look at picking up stocks from IT and pharma space.
Gujral says, today's low of 10650 on the Nifty Futures is the stop and now the target for Nifty is 11000. So, there is still 200-300 points to go. The downside could be 10650 in the short run, he adds. Moreover, the large caps seems to have taken the lead this time and they could take the Nifty higher while midcaps could lag a bit.
Fundamental and technical experts like Ajay Srivastava, Dimensions Consulting, SP Tulsian of sptulsian.com, Prakash Gaba prakashgaba.com, Sudip Bandopadhyay, Group Chairman Inditrade Capital, Anish Damania CEO & Head-Instl Equities IDFC Securities also shared theirs views on outlook for the market post the record highs and stocks and sector views.For full discussion, watch video