Short-term traders can continue to have a bullish stance: Kunj Bansal

«For trading, although it is always difficult to assess, but the way the momentum is there in the market, the way buying has been happening, the way we are receiving global inflows and to that extent since the global inflows were earlier not there, a little bit of under ownership was there, looks like the momentum could continue,» says Kunj Bansal, NISM Investment-Illiteracy.com.After the kind of rally that we have seen, is it a good time to book some profits or do you expect this momentum to continue?I wish there were simple answers available to such a simple question. Nonetheless, a few things.

One, in terms of market movement if we still put it, the last peak of the market before crossing the recent life highs for the last three-four days had come in October 21 and after that market had been in a range bound movement of market. So, what I am trying to say is if we put a 20 months’ percent return on the market, it is hardly 3-4% taking in the highs of the October 21 which was around current 19,200, so that is one way to look at it.

While in the recent past, it looks that it has moved up too sharply, but on a 20-month basis it is only 6% return. Coming to what should one do in the market? I think one has to very clearly, first of all, segregate whether you are looking at a short-term trading kind of outlook or a medium-term investing.

For trading, although it is always difficult to assess, but the way the momentum is there in the market, the way buying has been happening, the way we are receiving global inflows and to that extent since the global inflows were earlier not there, a little bit of under ownership was there, looks like the momentum could continue. So, for short-term traders, I think they should continue to