Nifty touches the 10K mark:What next?

July 25, 2017 was a historic day for the Indian share markets as Nifty, the major benchmark index in the market, scaled the 10,000 mark for the first time ever. There were many contributors to the gains of major indices, and taking the lead were banks. Bank Nifty and the broader market indices are also trading near their lifetime high levels.
 
On an YTD basis, Nifty has given returns of nearly 22% and Sensex has given returns of around 21%. No doubt this is a time to celebrate but market participants are wondering what would be the further movement in the Nifty 50 index.
 
Some market observers believe that the market is in an overbought position and might correct marginally. F&O cues show that there is heavy buying in call options at strike prices of 10,000 and above while heavy selling was seen in put options at strike price of 9,000. Currently, there are maximum open positions at Nifty July series’ 10,000 strike price for call option and Nifty July series’ 9,000 strike price for put option. 
 
F&O observers in the market believe that there may be strong rollovers into the August series, signaling strong expectations of further upsurge by benchmark indices. The earnings season for the first quarter of financial year 2018 is the only potential trigger that has ability to shake the market. Foreign institutional investors (FIIs) are net buyers in the cash market in July so far with net cash inflow of around Rs 437 crore. FIIs have poured in around Rs 24,353 in the cash market on an YTD basis.
 
On the global front, benchmark indices are trading at near all-time high levels. Dow Jones, S&P 500, NASDAQ Composite have hit their all-time high levels of 21,613, 2,481, and 6,425 respectively, giving strong positive sentiments for the Indian market.