BSE Sensex trading at a fresh all-time high: Views by Santosh Meena TradingBells
Indian markets are trading near their all-time highs. Markets are expecting good results from listed companies after the government announced tax rate cuts. As P/E will drop, majority of stocks are expected to remain firm.
Market View by Mr. Santosh Meena, Senior Analyst, TradingBells follows....
The market is rejoicing near an all-time high where Sensex is already trading at fresh all-time high while Nifty and Banknifty are at a kissing distance from the all-time high. We are already in a bullish trend where one step backward and two steps forward texture is continued in the market. Global cues especially positive development on the US-China trade deal front is driving the latest momentum in the market.
On Derivative front, Heavy short positions were created in index future by FIIs around 12000mark and there were many short positions at 12000 strike call option by many traders as market was showing some tiredness in 12000-12100 zone but they didn't get follow through to their short positions as Nifty witnessed smart bounce back from its 20-DMA of 11880 with the help of positive global cues that pushed bears on backfoot to cover their short positions and their short covering led a stellar rally in market in today's trading session.
There is a good chance that Nifty may hit fresh all-time in tomorrow's opening trade and continue its bullish momentum for a move towards 12300 in this expiry itself. In the downside, 12000 will act as strong support as there is significant put writing at 12000 strike price.
Banknifty is also likely to take out its previous high of 31783 and it may head towards 32500 levels in the coming days where 31250 will act as strong support in the downside.