It’s finally here. 10,000 on Nifty is no more an aspiration, it’s history. NSE’s benchmark index the 50-share Nifty took 21 years to go from 1,000 to 10,000 points, since its launch in April 1996, returning a compounded annual growth of 11.6%. While there have been several fundamental research-based voices on whether there is still scope for further near-term growth in the Indian equity markets, here are views from technical experts on what the charts tell.
Research and brokerage firm CLSA’s Global Technical Analyst Laurence Balanco sees Nifty-50 achieving one milestone at a time. Laurence Balanco has a medium-term target of 10,350 and a long-term target of 12,000. The CLSA Global Analyst doesn’t see Nifty touching 12,000 in next 12 months.
While JM Financial’s Associate Director and Chief Technical Analyst Gautam Shah said, this is not the right time for the leveraged traders to get in for the short term. Gautam Shah added that markets are looking overbought from the technical and fundamental point of analysis. Further, he cautioned that markets may see a significant fall soon as he said that markets are on a cusp of first meaningful correction in over a year.
Earlier in March 2017, brokerage firm CLSA had said that it expects Nifty to hit 10,300 points once the index breaks through the levels around 9,000 points. “We ultimately believe that this 9,000 area, we will break through that and make new all-time highs,” CLSA’s Global Technical Analyst Laurence Balanco had said in a TV interview.
A number of positive factors come into play which favoured Indian equities to cross the record breaking highs. Better than expected first quarter earnings, smoother GST roll-out, monsoon season boost and a resilient economic growth, which is expected to top that of China for the next 10 years.
The broader benchmark index, Nifty 50 crossed the historical five-digit figure of 10,000, hits a record high on Tuesday rising as much as 44 points from the previous close on Monday. The 50-share barometer opened 0.44% higher at 10,010.55 points. The major gains in the shares of blue-chip companies Bharti Infratel, HDFC Bank, Indiabulls Housing Finance, Vedanta, ICICI Bank helped the indices to scale new peaks in early trade. BSE Sensex also hit a record high rising over 100 points clocked a peak of 32,374.3 points.