Red-hot market runs into resistance zone; investors may book profits

Following a sharp bounce in the market off its June lows, analysts have cautioned investors, seeing that the Nifty valuation premium has gone past 10% to its 10-year historical average

The Nifty50 Index has ratcheted up gains in seven of the past eight weeks, soaring 2,405 points, or 15.7 per cent, during this period. The benchmark gauge last closed at 17,698. Although the momentum appears durable, the Nifty now heads into a key resistance zone of 17,700-plus levels. This could lead to a pull-back due to profit-taking by traders, observe analysts.

“The momentum readings have now reached the overbought zone, but the market is still continuing the momentum, albeit at a slower pace. The next 200-point range of 17,700-17,900 is a crucial hurdle for the index. It is quite possible