Most investors come to the equity market with a notion that it is an easy place to make money. True, equity as an asset class tends to outperform other asset classes over the long-term.
For the second week in a row, trading on the bourses was limited to four sessions, but accompanied by good market breadth.
The broader market indices stood their ground last week, refusing to go down at the close. Compared to that, the Nifty saw recovery from the day’s low on three days.
Most short-term traders have made good money in the last two weeks, as some convergence between Nifty moves and market breadth was restored after a gap of about six months.
We had yet another week in which call option holders made gains and the Nifty made another attempt to break its previous high after correcting in tune with international markets.
For second consecutive week, both Nifty and market breadth moved in tandem and the divergence between sentiment and indices narrowed.
The Nifty is in a new territory and most stocks ended the week with gains. But for Friday, the market went up on all days and the stock futures segment remained positive.
Stock indices are scaling new peaks on the leg-up given by abundant liquidity. It would now be hard for retail investors not to get carried away by this seasonal upswing.
Text books say the equity market should fall when interest rates go up. Last week, RBI has increased the interest rate, but the equity market did not correct.
As the Nifty touched new highs, investors and traders who had loads of mid- and small-cap stocks in their portfolios also got some relief last week.