Monday seems to be a magical day for the markets and a new term Magical Monday Market would seem apt what happened during the last week.
Markets gained a percent on Monday and once again set the momentum for the week in which BSESENSEX hit the 32k mark and gained 660.12 points or 2.10% to close at 32,020.75 points. NIFTY gained 220.55 points or 2.28% to close at 9,886.35 points. This was the second consecutive week in July when we saw this happening on Monday and the week having a good show. Nifty is up 4.02% since the beginning of the series.
Friday was a different kind of day and it appeared that the recently listed shares were under severe pressure. Whether it was AU Small Finance Bank or a CDSL or HUDCO. The shares saw higher volumes, significantly higher delivery volumes and lower prices. This is not to suggest that markets have peaked out but just that it is an indication.
Valuations are extremely high and there is no doubt about the same. The biggest driver continues to be liquidity and one needs to be wary of the same at these higher valuations. Be cautious is the buzz word.
NSE is in the news for the right and wrong reasons. On Monday it was disaster day when there systems came on only after the fourth attempt at 12.30pm and took about an hour to stabilise. Today the 17th of July would see their MD and CEO Vikram Limaye finally joining the board. Thirdly from the coming week NSE would introduce trading in 15 foreign stocks and three currencies.
Markets are crucially poised and dangerously too. It is better to be late than never. Take some profits of the table and allow markets to cool. Don’t be greedy and short the markets because bulls feed on bears and their shorts.
