Given that good old high-beta trade is back in the market, it is very easy for the indices to build further on the momentum that has come about in the early part of this week. New highs of 6500+ on the NIFTY have suddenly started seeming very easy and market commentators are getting unanimous about the pre-election rally finally having to take shape. What levels the markets will test in this new, untested zone is anybody’s guess but it does seem that there is a disposition towards fresh build-ups in long positions and this is not a case of short covering that we’ve seen a couple of times earlier when markets rallied in this fashion in Dec’13 and even prior to that. Cyclicals such as Cement, Cap Goods, Banking are the ones that have replaced the erstwhile movers and shakers from within the FMCG and PHARMA space and there could be some more momentum within this new found love for the down and out stocks of yore! Ideal time to dip into the market with some tactical short term long trades while keeping a close eye on booking profits in counters which have run-up too sharply (L&T, JPASSOC, DLF, to name a few!)
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