The Nifty has tested swing highs of 8996 by just a few 10-12 (9008 Spot) points today, before pulling back lower and closing at 8996. Prima facie the setup looks encouraging for bulls, though we remain cautious. Any fresh high within the range of 30-50 points would still be called a test, and would call for a correction of at least 5%, before resuming its bull run. At the moment, Nifty remains in control of the bulls and no signs of a potential correction are visible; one must watch out for top and reversal confirmation in the coming few sessions. Booking profits on long positions held earlier is recommended at these levels.
Here is a brief of how other indices performed today. The Bank Nifty slipped marginally in the red (-0.23%) and closed at 19,962, Auto Sector was down close to 1% at 8828, Energy was up (1.72%) and closed at 8861. Finance, FMCG and IT were all in the green and closed high by 0.35, 0.12 and 1.55 per cent respectively.
It is good to avoid taking fresh long positions at current levels and not get carried away in the bullish sentiments.
Have a Great Day Ahead!