When
we last spoke about the Sensex in a
post a few weeks ago titled ‘Time For
18 Again’ we had referred to the Sensex moving past 18,000 . Getting
beyond 17,000 and moving into 18 was a challenge. The market had become range
bound sort of hesitant to test the higher levels. For months we stagnated in
the 17K levels which was also why we had termed it an electric fence. Once we
moved into 18K, the question arose if we could sustain this level. The
answer as of today has been that the Sensex has not only sustained 18K, it has
now hovered into the 18,600 range. Buying has amped up and it’s fantastic to
see the Nifty also doing well.
There’s
a famous quote known as Merkin’s Maxim which states “When In Doubt, Predict That The
Trend Will Continue”. India’s Market Indices definitely seem to be
following this Maxim. During the past few trading sessions the Sensex has
breached the 17,000 level and the Nifty has also broken Five Thousand. While
they have fallen back into the sub 17k level and sub 5k level respectively. The
two psychological levels have become real factors. There is however a lot of
doubt floating around in the market, it seems to have become the most important
psychological determinant of trade in this particular range and period.Movement in the present range has become a two way street.
At
16,741 the Sensex lies sixty points away from hitting sixteen thousand eight hundred.
We are likely to see 16,800 sometime tomorrow. The level could have been easily
breached today but no trading took place on the BSE since the markets were
closed on account of Eid. The rally on the Indian markets has been tremendous
since the month of May. Even September so far has not spooked the markets. More
importantly we are a few sessions away from reaching the 17K level.
The
rapid rise of the Sensex has been baffling but no one should complain because a
Bull Run is a good thing.
There’s
a famous quote known as Merkin’s Maxim which states “When In Doubt, Predict That The
Trend Will Continue”. India’s Market Indices definitely seem to be
following this Maxim. During the past few trading sessions the Sensex has
breached the 17,000 level and the Nifty has also broken Five Thousand. While
they have fallen back into the sub 17k level and sub 5k level respectively. The
two psychological levels have become real factors. There is however a lot of
doubt floating around in the market, it seems to have become the most important
psychological determinant of trade in this particular range and period.Movement in the present range has become a two way street. 
