InvestorQ : What is your market view for trading on Thursday 04 February? Do you suggest booking profits in Cipla and what are the new tips to buy in the stock market?
Rashi Mehra made post

What is your market view for trading on Thursday 04 February? Do you suggest booking profits in Cipla and what are the new tips to buy in the stock market?

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diksha shah answered.
4 weeks ago
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On 03 February, the Sensex for the first time in its history decisively closed above the 50,000 mark. Twice it had crossed the mark but had faced resistance above that level. Of course, the Nifty is above 14,750 and the real test will be the Nifty getting beyond 15,000 and the Sensex getting beyond 51,000. But that should also happen eventually.

Trading on Wednesday 03 February was all about banks and pharma. Both sectors were the big gainers in the market. While the banking stocks gained big time from the bad bank concept, the pharma sector benefited substantially from the higher healthcare allocation in the Budget. Healthcare allocation increased by 137% to Rs.224,000 crore.

FPIs buying appears to be back with a bang in Indian markets. On Wednesday, FPIs bought equities to the tune of Rs.2,521 crore while DFIs sold Rs.400 crore. A good chunk of the money that went out of India in the last few days prior to the Union Budget appears to have found its way back into India after the government appeared very clear on its deficit goals.

Wednesday was also a tepid day for global markets with the Dow and the NASDAQ mildly flat to positive. At the same time, the European markets were mildly in the negative and this included the FTSE, DAX and CAC. SGX Nifty has been flat to negative in early trades on Thursday and some F&O weekly pressure may be seen after the rapid rally.

For Thursday, I would suggest booking profits out of Cipla after the very sharp rally. You should get a good profitable exit in a short span of time. While there are other positions at profit, the Sensex has done the job of giving a close above 50,000. Let us wait and see if it holds in which case another 100-150 points on the Nifty should be par for the course.

Regarding fresh buying, I suggest you go a tad slow as most of the current themes are already represented in the holdings that I suggested to you in the last few days. These are themes like to benefit from the Union Budget announcement. For now, look to lighten positions before adding more positions during the next week, at every opportunity.
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