Stock Market Investors HEADS UP! Sensex likely to hit 60K mark in September only - Experts' take
The Sensex crossed the 59,000 mark, while Nifty breached the 17,500 level.
It's an unprecedented moment as India's key stock indices rose during the mid-afternoon trade session on Thursday to reach new intra-day record high levels. Accordingly, both key indices - S&P BSE Sensex and NSE Nifty50 -- made new record highs. The Sensex crossed the 59,000 mark, while Nifty breached the 17,500 level.
As per market observers, the up moves come a day after the government announced support measures for some beleaguered sectors along with provisions for PLI schemes for others. Initially, both key indices had a gap-up opening.
Among sectors, Telecom, Banks and FMCG indices rose the most. At 2.00 p.m., S&P BSE Sensex traded at 59,057.82 points, higher by 334.62 points or 0.57 per cent from its previous close. Similarly, NSE Nifty50 traded higher. It rose to 17,599.70 points, higher by 80.25 points or 0.46 per cent from its previous close.
"Sensex can cross the psychological mark of 60,000 in September"
Santosh Meena, Head of Research, Swastika Investmart Ltd, said, "We are in a roaring and classical bull market where Nifty and Sensex continue to achieve new milestones and I believe this bull run may continue for the next 2-3 years while intermediate correction or shakeout phases can't be ruled out. If we talk about the near-term outlook then bullish momentum may continue in September month where Sensex can cross the psychological mark of 60000 but I think we may see a correction after then therefore October could be a month of correction. Investors should remain invested in this bull run while they can come out of those stocks which have quality concerns. Those who are not comfortable after a massive rally can go through the SIP route to ride this bull run.
"No fresh buying"
Commenting on the development, Rahul Sharma, Co-Founder, Equity99, said, "Markets have made New all-time high with Sensex touching the 59000 marks for 1st time. The rally is driven by various PLI schemes introduced by the government. Further, we expect the bank to perform well as they have not yet participated in the rally, other than we don’t recommend any fresh buying at this level as markets have made a huge move in a short time. We advised investors to keep strict stop loss to their positions. Some correction is required to get a good valuation to enter fresh in the market, but scenarios which we are witnessing along with the developments from Govt. shall surely keep us in a bull run, except if any global scenario changes take place."
"Advance decline ratio has fallen"
"Volumes picked up further in the morning session but has cooled off a bit post noon," said Deepak Jasani, Head of Retail Research, HDFC Securities. "Advance decline ratio has fallen to just above 1:1 suggesting profit-taking in broader markets."
"Govt approved a big-bang relief package"
According to Likhita Chepa, senior Resaerch Analyst, CapitalVia Global Research: "Sentiments got boost as government has approved a big-bang relief package for the stressed telecom sector." "Our research suggests that if the market is able to sustain the level of 58,900, we can witness higher levels of 59,000-59,100 as the momentum indicators like 'RSI' and 'MACD' to stay positive and market breadth to improve, further strengthening a short-term bullish outlook."
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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