Sensex@60K, Nifty near 18000! What should investors do? Buy, sell or hold?

The market is trading at a crucial juncture where benchmark indices are trading in unchartered territory. The S&P BSE Senex climbed Mount 60K for the first time on Friday while the Nifty50 inched closer towards 18000.

The S&P BSE Sensex hit a hit of 60,333 while the Nifty50 hit a record of 17,947 in intraday trade on Friday. Both Sensex and Nifty50 closed with gains of over 1 per cent each for the week ended September 24.

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If someone is looking at putting money at current levels should tread with caution as the Nifty50 is trading at overbought levels. Dips if any should be used as a buying opportunity as long as Nifty50 holds above 17000 levels.

There are no signs which suggest that investors should go short on this market. The right strategy is to cut down on excessive leverage and focus on growth & value pockets.

We spoke to experts on what should be the right strategy for traders as benchmark indices trade in the unchartered territory:

Expert: Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities

Investors should only focus on growth and value pockets as intermediate corrections within the ongoing bull run would continue to provide opportunities to realign their folios.

Time cycle tools are still pointing towards 16-18 months of continued bull run with a few timely running corrections of 3-5% on its intermediate time scale.

With its weekly ADX hitting 50 with RSI around 80 looks like a repeat of May 2014 and June 2017 events where the trend strength indicators had hit their respective overstretched zones but price action continued to scale higher by 20% & 21% respectively before giving it up.

In case if the history repeat, we may see the 18k Nifty entering its 21k zone.

Expert: Mohit Nigam, Head - PMS, Hem Securities

The time is to ride the momentum with caution as markets have rallied over the past year or so. The current levels of 60K on the S&P BSE Sensex and 18,000 on the Nifty50 call for further upside with participation from selected sectors.

Despite the rise in the prices of some of the stocks in the past, further steam is seen in the stocks due to improving financials, these stocks are to be held over the long term to capture the completer growth.

Expert: Aditya Agarwala, Senior Technical Analyst, YES SECURITIES

Traders should be cautious as the Nifty50 index approached the 18000 mark, it is not the time to ride the momentum blindly rather it is time to ride the trend from here on cautiously as the index looks stretched on charts with RSI above the 80 mark on the weekly time frame.

Also, India VIX is inching higher making an attempt towards 18 which could result in higher volatility and sharp corrections.

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)