The market resumed its bull run as benchmark indices wiped out early losses to hit fresh highs on December 19 afternoon deals. The Sensex hit an all-time high of 71,623 to shut shop at 71,437 and the Nifty 21,505 to eventually end at 21,445.
With no major triggers in place, analysts expect the markets to gyrate between gains and losses hereon.
"There are no major triggers expected in the next few days. People are moving money here and there to fetch best returns," said Ambareesh Baliga, an independent market analyst.
The broader markets, however, traded mixed. The BSE smallcap index scaled a lifetime high of 42,544 in afternoon deals to later end at 42,327 and the midcap index slipped 0.3 percent to 36,186.
ALSO READ: Daily Voice | Why this market veteran stays bullish on PSU bank stocks even when lenders lag behind
The market strength gained as investors resorted to selective buying in sectors like FMCG, PSU bank, and oil & gas which missed the earlier rallies, analysts said.
Rajesh Bhosale, technical analyst at Angel One, said PSU banks such as State Bank of India, Bank of Baroda and Canara Bank still have juice left even in this bullish trend. He suggested a "buy" position for these PSU names.
Also, the government's windfall tax cut on domestically produced crude oil and diesel exports helped shares of oil marketing companies gain on December 19.
Shares of Oil India, Reliance Industries, BPCL, ONGC, and Hindustan Petroleum gained in the range of 0.4-7 percent.
Overall, experts flagged that since markets have entered an 'overbought zone', investors are picking stocks now that have not participated in earlier rallies.
ALSO READ: Stockology: Markets in sustained bull markets; What do the stars hold next?
"All the effort in pulling markets forward will now rest on domestic institutional investors as foreign institutional investors will wind down their activity ahead of the holiday season," said Ambareesh Baliga.
Meanwhile, Bhosale of Angel One guided that the next cue for markets lie ahead of new years as stocks that have high exposure in mutual fund schemes may gain traction due to year-end activity.
However, some volatility must be kept in mind ahead of the interim Budget, he added.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
