Nifty @ 10,000! Yes, you read it right. The last time the index came close to 10K was in March. But for 10,000 to happen, the Nifty will require a healthy consolidation and a convincing close above the 9,400-95,00 level, experts say.
The Nifty50 has recouped almost half of the losses after hitting a swing low of 7,511 from a high of 12,400 in January. A decisive breakout above 9,400 can take the index towards the 9,600-10,000 level.
The last time when the Nifty came close to 9,400 was on March 17 but then markets sold off immediately day and closed below 9,000.
"We believe a decisive break-out above 9,400 will pave the way for further acceleration of upward momentum towards the psychological (important) mark of 10,000 in the coming months," brokerage firm ICICI Direct has said in a note.
"Else consolidation in the broad range of 9,400-8,800, amid stock-specific action would make market healthy," it added.
It expects intermediate correction to get anchored around key support threshold range of 8,800-8,500.
Amid the rise in benchmark indices, ICICI Direct highlighted 26 bargains buy stocks including Lupin, Aurobindo Pharma, Bata India, Axis Bank, Maruti Suzuki, HPCL, BlueDart, and Bharat Electronics.
The Nifty50 has been stuck in a range since April 20 after recording a high of 9,390. Thereafter, it remained sideway between 8,900 and 9,400. And, the recent price action suggests that both these levels were well respected.
Hence, all eyes are on 9,404, the intraday high on April 28 will be an important level to watch out for in the coming session. The market may remain volatile amid April F&O expiry.
“It has not really been a trader’s delight because of the gap openings in both directions. Tuesday’s opening was important as it did highlight a trigger above 9,390 but the markets were swift to correct thereafter,” Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments, told Moneycontrol.
“Even though it has recorded a high of 9402, I would be keen to see if it can cross that level again and sustain above it. If we can clock a close above 9,405/9,410, I think this market can zoom to 9,600 levels within the next two-three days.”
In terms of sectors, NBFCs and financial stocks helped the market cross the 9,400-mark. The gains on April 28 were a real relief for investors.
The Nifty50 has repeatedly hit 9,250 but hasn’t slipped below it, which suggests it has become a crucial support for the index. A close above 9,410 can open doors for it to reclaim 9,600.
“Even though the Nifty failed to close above the level of 9,400, it comfortably closed above the previous day's high which is a positive. The Nifty has formed a continuation formation and once it starts trading above the level of 9410, we can expect the index achieving 9,650 in few days,” Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities told Moneycontrol.
“The Bank Nifty is forming a bullish ascending triangle formation that might lead to quick retracement up to 21,150 from 20,670 levels,” he said.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.