Nifty, which closed above 9400 points for the first time, may reach a level of 9600 points sooner than expected as the Indian markets are poised to scale new highs from the record levels they reached today on the back of a better than expected monsoon forecast, Angel Broking said in a couple of research notes.
“While the macro improvement has been driving the markets over past few months, fresh monsoon forecast suggesting 100 percent rainfall (earlier 96 percent) in 2017 has thrown a positive factor for the markets to move forward,” Vaibhav Agrawal (Head of Research and ARQ) said in a research note.
“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,” Sameet Chavan (Chief Analyst- Technical & Derivatives) said in a research note.
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Today after two weeks of consolidation, the Nifty reached an all-time high of 9,414.75 and closed above 9,400 for the first time ever. The BSE Sensex too closed at new all-time high. Nifty made a new all-time high of 9,414.75 points, while Sensex climbed to a record 30,259.71 points in late afternoon trade. Both the indices also closed at record highs, with the Nifty ending the day at 9,410.15 points while Sensex ending at 30,248 points.
“This level (of 9600) is very much in-line with our earlier projections and hence, traders are repeatedly advised to stay with the trend,” Chavan added in his research note.
“We believe that the current macroeconomic situation is conducive for the economic growth and GST and affordable housing are likely to take our GDP growth higher over next several years,” Agrawal added in his research note.