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'Stay put! Nifty may reach record highs in the next 1 year'

The recent policy change such as reduced corporate tax is going to have a long term positive impact on markets. One must utilize the dips as market could be seeing higher levels of 12700-12900 in next 1 year.

October 23, 2019 / 11:10 AM IST

We believe that we are in a range of 12,000 on the upside, and about 10,000 levels on the downside, Mustafa Nadeem, CEO, Epic Research, said in an interview with Moneycontrol’s Kshitij Anand.

edited excerpts:

Q) Market recorded healthy gains of over 3 percent and closed above its crucial level of 11,600 for the week ended October 18. What are the important levels to track for the Diwali week?

A) There are two key resistance levels we are looking, these are 11,720 and 11,750. These are the two important levels which market should breach, and any failure to do so will bring Nifty back towards 11,100 over the next 7-8 days.

Q) Any global or domestic events to track in the coming week which could impact markets?

A) How trade-war progresses would be an important factor which investors will be watching. And, with recent tariffs levied on Eurozone, Britain's exit from the EU will keep investors on the edge.

Close

Volatility may continue and how global markets perform. S&P is oscillating near all-time highs for the last few weeks now and it would be important to see if there is any strength coming back.

Domestic IIP and manufacturing numbers would be very important as previous muted numbers were disappointing and after all the rate cuts and policy measures are there any shift/improvement in the activities.

Q) What is your outlook on markets for Samvat 2076?

A) We believe that the market has not moved much since January 18. We have been in a broader range where we are seeing previous highs being breached by a few percentages and back to a lower base of 10,000.

So at this moment, we believe that we are in a range of 12,000 on the upside and about 10,000 levels on the downside.

The recent policy change such as reduced corporate tax is going to have a long term positive impact on markets. So, one must utilise the dips while in the next one year we believe that the market could be seeing higher levels of 12,700-12,900.

Q) Dhanteras is on Friday – Is it the right time to invest in physical Gold or Gold MF?
A) One must invest in Gold given the kind of diversification it adds to the overall portfolio. Physical gold has other costs attached; hence, one must opt for Gold MF or ETF that is available. In the investing scenario, Gold/precious metals add much value to the overall portfolio in the long term.
Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Oct 23, 2019 11:10 am

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