Dalal Street bulls pushed domestic benchmark indices higher on Friday. While Sensex surged over 1000 pts to fresh 52-week high, NSE Nifty 50 traded above the 18,300 level. Both benchmark indices are now 1% shy of touching their all-time highs. “From the last couple of trading sessions, the market was in a cautious mood and was waiting for a crucial US inflation print for October. On the positive side, the inflation print was cooler than the expected number triggering a rally in equity markets, across the world, including our domestic market,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS. Analysts believe that the near-term trend is positive and Nifty may touch 19,000 soon.
Be patient in this market, invest in a staggered manner
“The market is not very far from an all-time high. Quarterly results have largely been in line with expectations. In the last year, the Indian market had a 92% correlation with the global market. Thus, a new market high cannot be ruled out if global markets are supporting it. Investors need to be patient in this market and invest in a staggered manner. Also, investing in dips will work well in this market. We recommend investors build a position in quality companies (where the earnings visibility is very high) with an investment horizon of 12-18 months,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS.
New record for NSE Nifty 50: Only a matter of time
“It was well known that the crucial US inflation numbers for October will sway the market either up or down depending on the trajectory of inflation. Now that the inflation print has come below expectations, the direction of the markets is a foregone conclusion. Since the CPI and core print indicate moderation of inflation, it is probable that the Fed might pause after one more hike of 50 bps. The outlook is bullish for the near- term. A new record for the Nifty is only a question of when,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Overall structure of Nifty, Sensex bullish; invest for riding 19000+ levels in near term
“If Nifty manages to sustain above the 18350 level, after a gap-up opening then we can expect a move towards 18500/18600 levels. On the downside, 18200-18150 will be an immediate demand zone after a gap-up opening. Bank Nifty is outperforming and respecting its 9-DEMA beautifully. It is likely to trade above the psychological hurdle of 42000 which may lead to a move towards 42500/43000 levels. On the downside, 41800-41700 will be the immediate support zone after a gap-up opening. The overall structure of both Nifty & Sensex is bullish. So investors have to invest in the market for riding the 19000+ levels in the near term,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
Market has not peaked; investing now a better choice for long-term investors
“Although the market reached a new high today, this does not necessarily indicate that the market has peaked and a correction is on the horizon. On long term charts, both the Nifty50 and the Bank Nifty are strongly positive and can continue their upward path. Long-term investors should keep making investments; making investments now would also be a better choice for them,” said Rameshver Dongre, Research Analyst – Equity Research, CapitalVia Global Research.
Also Read: Nifty, Sensex jump 1.5%, Bank Nifty tops 42000 for 1st time; here’s what is fueling Friday’s market rally
Tech Stocks could see further rally in next 3-6 months and beyond
“With the Oct inflation in the US coming at 7.7% against expectations of 7.9% and previous month’s inflation of 8.2%, thereby hinting of some softening in inflation rates in the US. Since the US does not have any kind of shortage of Natural Gas and Oil for the winters, there are expectations of Inflation to further soften and consumables prices to stabilize at same levels going ahead. Also, as we know that most of the large cap Indian IT companies have their largest share of revenue coming from their clients based in the US, so this is a positive news that might revive the sector further already under hope of improving attrition rates and margins upcycle from hereon. Also, with the benchmark indices at 52-week highs, and the previous leg of the market rally primarily led by PSU Banks, it probably be the time for the IT sector to outperform leading the next leg of market rally,” said Anmol Das, Head of Research, Teji Mandi.
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