In the last week, trading started on a flat note on Tuesday but Nifty gradually resumed its upward trajectory to reclaim 13,000-mark first and then clocked fresh record highs as the week progressed.
There was no major movement but overall bias remained positive as we managed to add another couple of percent to the previous weekly close.
There has been no stopping for the recent rally and it’s been more than one-and-a-half months now for the markets giving gravity-defying moves.
For the week gone by, if we look at the benchmark, we may not get the real picture of the overall action, but if we take a glance at some of the individual themes like auto, we see individual stocks have given spectacular moves throughout the week.
We have been hovering in the overbought territory for the last 2-3 weeks, but sometimes the market does not respect the theory and hence, it can remain overbought for a long time as well.
But in our sense, the optimism has now turned into a bit of euphoria and when such a condition happens, it’s advisable to be a bit proactive and take some money off the table, especially for a momentum trader.