On Friday, the Nifty 50 reached a new all-time high at 23,490.40. The Bank Nifty closed above 50,000, and the BSE Sensex gained 181.87 points, finishing at 76,992.77. The Nifty 50 ended at 23,465.60, up by 66.70 points.
Experts say more attention is expected in the financial markets due to positive factors like the BJP-led victory in the Lok Sabha elections, lower inflation, and a strong economic outlook.
Prashanth Tapse from Mehta Equities highlighted that Nifty 50’s gains were notable despite the US Federal Reserve planning only one rate cut this year. India VIX dropped 4.97% to 12.82, reflecting reduced market anxiety.
The stock market was closed on Monday, June 17, for Bakri Eid and resumed trading today.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
- Current Market Trends: The index started the week positively, staying near life highs, forming a bull candle, and indicating continued positive momentum. The broader market outperformed.
- Weekly Forecast: Nifty 50 is expected to stay above 23,400 and move towards 23,800 in the coming weeks. Any brief pause after the recent 10% rally should be seen as a buying opportunity, with strong support at 22,800. Specific sectors like BFSI, PSU, Capital Goods & Infra, Defense, Power, and Auto are likely to outperform.
- Positive Signs:
- Market Breadth: Stocks above the 50-day EMA improved from 51% pre-elections to 88%.
- India VIX: Dropped 24% this week, easing post-election anxiety.
- US Market Impact: Strong US markets benefit the domestic market due to direct correlation.
- Support Levels: Higher peak and trough formations suggest strong buying demand, with support revised to 22,800.
- Bank Nifty Outlook: Expected to reach its all-time high of 51,133, with immediate support at 48,500.
Top Stock Recommendations:
- Reliance Industries Ltd (RIL)
- Buy Range: ₹2,920-2,958
- Target: ₹3,270
- Stop Loss: ₹2,730
- Life Insurance Corporation (LIC)
- Buy Range: ₹1,045-1,065
- Target: ₹1,175
- Stop Loss: ₹974
These stock recommendations focus on potential breakout opportunities in the current market scenario.
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