Right time to stay away from Nifty?

Do you think is it a good time for take profit from Nifty? This was the queries I had been receiving last week. It is normal doubt from an investor view point as Nifty crossed 8000 and Sensex crossed 27000. After a long period of sluggishness in the market ,bulls came back last year and we are expecting in long run this bull trend will continue. But for a portfolio rebalancing we are expecting FIIs may start taking some profit. So we recommend to reduce equity allocation for the time being.


Within 1 year Nifty rose 44 percent. Gold decreased 14 percent same period. Investors increased their equity portion from 70 percent to 77 percent and reduced allocation in fixed income bonds. That indicate there were a 10 percent growth in equity portion that may trigger a sell for the time being. If your portfolio is filled with small cap and mid cap exit immediately. Take profit from infra, real estate and energy stocks. 

Last 2 days Nifty seen adding more than 100 points triggered by positive news from GDP data and prime ministers Japan visit also favored the market. As on today we are expecting a selling below 8100 may trigger a down ward move in Nifty. Traders can place a short sell order just below this level. 

Excella trader provide equity and nifty calls in your email.