Sensex,Nifty at record high, should you Book Profit now?

Sensex and Nifty to touch new high, buy or book profit
Sensex and Nifty to touch new high, Buy or Book Profit

Monday 20th May, Nifty and Sensex jump more than 3.5% and gained 421.10 and 1421.90 points respectively on Exit poll verdicts. As per the Exit poll announced on Sunday 19th May, it’s a clean sweep for NDA Government. Indian Stock Market rejoice as the Exit poll indicated the clear majority for the Modi Government in the second time.


Sensex and Nifty 

Monday's top gainers in Nifty 50 stocks are Indiabulls Housing, Adani Ports, IndusInd Bank, SBI, Tata Motors. The main losers are Dr.Reddy’s Lab, Zee Ent., Bajaj Auto, Tech Mahindra, and Infosys. All sectoral indices ended in the green lead by PSU Banking which gained almost 4-9%, Infra, Auto, Energy, Metal and Pharma are other positive sectors.


Sensex and Nifty are almost near to all-time high and in the last three trading session both the indices gained around 6%. It was already expected that the market will rise 6 to 10 percent if NDA gets a clear majority.


Now the big question is the market has already gained 6 percent now what? Can a Nifty and Sensex touch 12K and 40K respectively ahead of Lok Sabha election result 2019 or after the result? What would be the next target for Nifty and Sensex? Should you Book profit or take a fresh position in the market? There may be many questions arising now in your mind as investors. We will try to answer them today so that you should not fall trapped and lose your profit gained so far from the recent market rally.


Let us first Check out the Trading range of Nifty and Sensex for tomorrow:



The Trading rage of Nifty for Tomorrow is 11709-11755- 11837-11919-11963 on spot level basis




The Trading range of Sensex for Tomorrow is 38811-38961-39112-39383-39653-39804 on spot level basis.


Both Nifty and Sensex may not touch the 12K and 40K ahead of the result but would definitely test fresh all-time high in the coming few days. The biggest challenge for the Indian Stock Market after the election result is Crude Oil Price and other Global cues which can ruin the show.


Should you Buy now or  Book Profit



It is very much confusing when to book profit, particularly when the market is trending on some event. If you have gained some profit from the market the first and foremost thing you should do is to protect the Capital and Profit earned so far. In such a situation you can follow below options to protect your fund:


Book Partial Profit- If you already made a handsome profit from the market so far, it is better to book partial profit
Stop Loss- If you already gained some profit from your investment you can put stop loss on a daily basis until you book your profit.
Trailing Stop loss-You can also put trailing stop loss if your broker providing Bracket Order (BO) facilities. In bracket order, your stop loss will automatically trail as per trailing percentage you put. In BO either your Stop Loss will hit or your target if one hits other order will automatically get canceled.
Hedge the Position- This is another option where you can hedge your existing position and minimize your loss if the market gets reversed.


Conclusions:



It is very essential to protect your capital and profit earned so far because you never know when the market reverses its direction. Sensex and Nifty already rallied 6% it may gain another 3-5% in coming days but you should protect your fund if you made some profit.
 
 



If you like the article, please share it with others.


Happy Investing!!!

Finogyan Team
Sensex,Nifty at record high, should you Book Profit now? Sensex,Nifty at record high, should you Book Profit now? Reviewed by Finogyan on May 20, 2019 Rating: 5

No comments:

Nifty and Bank Nifty Support and Resistance for Tomorrow

Bank Nifty Support and Resistance

Powered by Blogger.