Goldilocks Premium Research expects Nifty to move towards 15,650 and then 16,000, Gautam Shah, founder and chief strategist of the technical research firm, told CNBC-TV18.
“There is a lot more upside, there are no signs of topping out. The market has climbed the wall of worry and people are now convinced that the market knows the economy much better than all of us put together. Therefore, in the near-term, we could be moving towards 15,600-15,650 but eventually, the foundation has been laid for 16,000,” he said.
On Nifty, Shah said, “Banks are going to take it to 16,000 and it’s clear because they underperformed for a couple of months while the COVID second wave played out and as the numbers started to ebb, on the COVID front, banks and autos started to do well.”
According to him, ICICI Bank and SBI will be the stocks to watch in this up move. “There are new leaders emerging; in the past, it was HDFC Bank and Kotaks’ of the world, but they have underperformed and ICICI Bank and SBI have taken over a trend which I see continuing over months to come,” said Shah.
For the entire interview, watch the video
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.