India’s equity markets witnessed both euphoria and a sense of fear on Tuesday as the key stock index CNX Nifty rose above the landmark 10,000 level.

The index, which represents 12 sectors of the Indian economy, is in the seventh month of its bull run, the longest since 2007. Anchored by the NSE, Nifty has gained 26 per cent without any meaningful correction since the beginning of 2017.

Nifty touched an intraday high of 10,011 but could not sustain the rise; it ended the day near Monday’s closing level of 9,964. Nifty’s rise above the 10,000 mark was momentary as the index gave up all its gains in the first hour of trading on profit-booking.

While the good news that has propelled Nifty to its record peak is behind us, experts said the next few days would be testing time for the index.

The much-awaited US Federal Reserve meeting is scheduled for Wednesday, wherein the market will watch for cues from the Chair Janet Yellen.

“The Fed meet and derivatives expiry on Thursday would be among the first tests for Nifty,” said Kunj Bansal, ED & CIO, Centrum Wealth Management. “If one looks at the bigger picture, the results season has not given too many positive surprises. So the markets should consolidate around this number. The risks are ever present but manifest in different ways. One will only know the reason for things turning with the benefit of hindsight.

“Hence, while it’s the index at five figures, it is a virtuous cycle which follows in terms of new investors getting carried away and getting exuberant, this is the only thing one should watch for,” Kunj Bansal added.

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