​As Nifty moves towards 21,000, experts advice caution and point out the hurdle zones

Sep 12, 2023

By: BI India Bureau

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Nifty50 hits lifetime high

Fortune, they say, favours the brave but those who joined the party as Nifty50 hit a new lifetime high of 20,000 may have burnt their hands. The 50-share benchmark index is seeing volatility but the optimism is not all but gone.

Credit: IANS

Infectious optimism

While the overall trend for India in the medium and long-term remains positive, it is hard to ignore the spectre of slowing growth, sluggish demand and sticky inflation. Here’s what experts say investors should do.

Credit: BCCL

‘Buy on dips’

“Key point to highlight is that, the index has retraced past 29 sessions decline (19,991-19,223) in just seven sessions. The faster pace of retracement signifies a robust price structure that makes us confident to revise the target upward at 20,400 in coming weeks. Thus, buying on dips would remain the prudent strategy to adopt as immediate support is placed at 19600,” said ICICI Securities.

Credit: IANS

A hurdle zone

“We can expect the positive momentum to continue. On the upside we expect the Nifty to target levels of 21,000 from a short-term perspective. In terms of levels, 19,865 - 19810 is the crucial support zone while 20,200 - 20,250 shall act as an immediate hurdle zone,” said Jatin Gedia, Sharekhan by BNP Paribas.

Credit: IANS

Sitaron se aage…

“Nifty at 20,000 is part of a journey and not a destination. Sitaron se aage jahan aur bhi hai. Where yesterday Sensex was, today Nifty is. Where today Sensex is, tomorrow Nifty will be there for the long term investors. However in a momentum market one has to be cautious,” said Nilesh Shah MD Kotak Mahindra AMC.

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Tone will be positive

“We may see some consolidation around the current levels after reclaiming the record high but the tone is likely to remain positive,” said Ajit Mishra, SVP - Technical Research, Religare Broking.

Credit: BCCL

Banking on banks

“While all the sectors are contributing to the move, we feel the performance of banking would play a crucial role in making a sustained up move from hereon. At the same time, participants should maintain caution in stock selection, especially in the midcap and smallcap space,” said Mishra.

Credit: IANS

‘A good beginning’

“India has come a long way in the last 30 years in its market participation. We have a longer way to go. This is a good beginning. There will be ups and downs in the journey going forward — like in the past,” said Ashishkumar Chauhan, MD and CEO of National Stock Exchange.

Credit: IANS

Progress in markets

“India will continue to progress and markets will continue to reflect that progress as seen in the Nifty 50 index,” said Chauhan.

Credit: IANS

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