The Sensex hit an all-new high and markets have been trading in the green since then. While this is market environment is definitely inviting for traders, the question is how should potential investors react to the early fireworks this year, and what is further in store.
Hitendra Vasudeo of Stockmechanics.com says that there is very good opportunity from a trading angle, but one should be prudent while investing now. "To invest at these levels one needs to be really cautious and selective and see whether new breakouts are coming in and new consolidations are happening, " he says.
"There are some stocks where breakouts and consolidations are happening on fresh moves. Most of the stocks have run up so one needs to be a bit cautious," he adds.
Vasudeo sees the Nifty moving in tune with the Sensex too.
Looking ahead, he says expects their targets to be achieved before the anticipated time. "For January we have indicated a yearly target of 13,500 on the Sensex, and looking at all factors, that looks possible now," he says.
"In spite of all the volatility coming in, at some point we had doubts as to whether it would happen or not, but with the way things are moving, it should be able to happen by December," he added.
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