Nifty closes above 9,400, is 10,000-mark not far?
Nifty on second-straight day crossed another historic-mark and closed above 9,400-mark. Today, Nifty ended at 9,422.40, up 15.10 points or 0.16%, while Sensex closed at 30,250.98, up 2.81 points or 0.01%.
This new mark has raised the hopes for Nifty's 9,600 landmark.
Moreover, analysts expect Nifty at 10,000-mark by year end.
Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking, said, "If we meticulously observe the daily chart, a ‘Bullish Flag’ pattern is clearly visible. This pattern generally meets with its projected targets in a faster time as compared to other price patterns. If we try to calculate the potential target of this structure, we get another magical figure of 9600. This level is very much in-line with our earlier projections and hence, traders are repeatedly advised to stay with the trend."
If we look at Nifty's performance in this year, the exchange has given returns of 15% in just five months. On January 2, Nifty was trading at 8,179.5, and today it closed at 9,422.40, giving returns of 15.19%.
For long-term, if you are planning to enter the markets now, then this is the time. Speaking with Zeebiz, Anand James, Chief Market Strategist at Geojit Financial Services, said, "Several sectors look overbought, while some have some more headroom, and some like IT, Pharma etc. have been lagging much behind. So, there is definitely good room for investment if you can afford to be choosy."
To invest in equity markets, the important thing is "patience". So, if you are looking Nifty at 10,000-mark, the best way to reap such windfall gains is to stay invested. "More importantly, with interest rates flat, and gold glittering less, it is not as if we are flush with other investment choices," James added.
Amit Goenka, Analyst at multibaggerstocks.co.in, said, "Expect Nifty to hit 9900 in the next 2-3 months where we may see some correction due to a psychological resistance level. We may see a lot of profit booking and volatility around that level.
"Global cues and earnings will be the deciding factors. Valuations for most companies are at all-time highs and unless earnings are decent, I don’t see 10000 being crossed easily."
Pankaj Karde, President & Head - Institutional Sales and Trading, Systematix, said, "India has seen a significant rally, with all institutional investors getting positive. We believe that India is poised to see Nifty at 10000 by year end."
In support of his views, Karde said, firstly India has a strong political stability. After the tremendous win in UP, the market has factored in strong political scenario and a win for Modi in the next elections in 2019. The political stability has given India strong confidence from all investors- institutional and retail.
Secondly, as per Karde's views, the flow of money from Indian retail investors is very high and such kind of flow is not seen in many years. Any fall in the markets is been considered as buying opportunity
Also, there has been expansion of multiples and there are few sectors that are seeing re-rating. One thing we have to see that the rally has not been broadbased. Sectors like IT and Pharma are yet to participate, leaving scope for further upside, he added.
"At current levels, one should continue to invest selectively. Also, fundamentally strong stocks needs to be held on for a longer perspective. In this rally, stocks with poor fundamentals have done also done well, which one should exit," Karde said.
Hence, look equity market for long term and stay invested!