Rally in Equity Market heading for a Price Trap.


The rally in the equity market is a healthy sign, but stocks may have moved too much, too fast. This is something traders and investors should watch out for, say market veterans.



The rally witnessed on Dalal Street last week was fast and furious, which made some analysts to conclude that the market could be heading towards a 'price' trap.



The rapid appreciation in several stocks over the past week further reduced the appeal of the domestic market. Brushing aside Brexit fears, the S&P BSE Sensex rose 2.8 per cent while Nifty50 gained 3 per cent during the week ended July 1, 2016.



"A price trap is in the making. It has now become difficult to find ideas with decent upside potential without after the recent rally. Low global yields have already led to mispricing in several sectors,"