Nifty level of 10,650 or higher not ruled out

The Nifty Bank has been a strong driver after the bank recap plan

The market continued to hit new highs on the eve of the one-year anniversary of demonetisation. Global trends weakened somewhat however. The Nifty hit an intra-day high of 10,490 on Monday before it pulled back on profit-booking. FPI (foreign portfolio investors) buying is back but more than that, retail and domestic institutional buying is pushing the market to successive new highs.

Obviously, the new highs confirm that the long trend remains bullish and momentum looks good. However, this is a new zone so, target setting is near-impossible. Depending on levels of optimism, target of 10,650 or higher could be hit.