The Nifty hit the magical figure of 10,000 today, capping a strong year in which it has broken multiple records.
The Nifty hit the magical figure of 10,000 today, marking a strong year in which it has broken multiple records. A smooth initial rollout of GST, good monsoon and hopes of a rate cut by the Reserve Bank of India (RBI) and earnings recovery has propelled the Nifty rally this year. The Nifty has gained over 22 per cent this year and could add even more, say analysts. Many analysts remain positive on Indian markets though some don’t rule out a correction in the short to medium term.
Gaurang Shah of Geojit BNP Paribas:
“We remain extremely positive on the market for the long term. When we were at 9,500, people were sceptical whether we will go up. In longer term, Indian markets could see much higher levels on the back of earnings, good monsoons and government policies…all the positive triggers are there. Only joker in the pack is global geo-political situation. At current level, from a long term point of view, one should stay invested. If one has not, then one can be a disciplined investor and buy at these levels and add to it on dips.
Who said 10,000 is a limit? It is just the hype created around 5-digit magical round figure number. We have seen 5,000, 6,000, 7,000, 8,000, 9,000 10,000 and we will see even higher from that.”
Sanjiv Bhasin, Executive Vice President at IIFL:
“Nifty at 10,000 will not be a sustainable but it is a key milestone for the Nifty. Globally markets are on an overbought zone. Nifty@10,000 may not sustain. We think correction is overdue in the market and it might come once we hit that level. We expect a 7-10 per cent correction in next couple of months and Nifty can go down to 9,200-9,000 levels.”
Kishor Ostwal of CNI Research:
“Nifty is likely to hit 10,500 by Diwali. As long as shorts are not squared off, correction is impossible in the current market.”
AK Prabhakar, head of research at IDBI Capital Market:
“Once 10,000 is seen, some profit-booking might emerge as people will have a sigh of relief. Then a 200-300 point correction is not ruled out, but eventually we are headed higher 10,500 or even higher levels by Diwali and 12,000 by year-end is what I have been maintaining and I still maintain my levels.”
Sumeet Bagadia, associate director Choice Broking:
“If 10,000 is taken away then, there can be an upmove of 200-300 points. Profit-booking can emerge but it is difficult to say when it will happen. But once profit-booking starts, then only we can say there could be a fall of 300-400 points.”