Analysts say Nifty likely to claim 19000-mount by year-end after breaching life high level - check triggers and recommendations

Nifty at 19000, Nifty may breach life high level: With Indian markets on Friday hitting new 52-week highs, the benchmark index Nifty50 is soon likely to breach its all-time high level of 18600 and may surge further to claim 19000-mount by this year-end, many analysts expect, quoting strong technical chart on weekly and daily basis.

The domestic markets managed to end higher for the fourth successive week amid mixed signals, wherein the frontline indices, Nifty and Sensex, regained strength on Friday taking cues from the global indices and settled around the week’s high to close at 18,349.7 and 61,795 levels respectively.

Technically speaking, Nifty’s immediate goalpost is seen to conquer its all-time-high at the 18605 mark and then aggressive targets at the psychological 19000 mark in coming months supported by multiple positive triggers, Prashanth Tapse; Research Analyst; Sr VP Research; Mehta Equities said.

While listing down the triggers, Tapse said that with the higher-than-expected GST collection, foreign investors coming back with full force and signs of cooling down inflationary concerns globally are aiding the markets to touch a new life high soon.

While the line in the sand on the downside for Nifty the immediate support is near the 18077 mark and below this 17907 can be tested as long as Nifty holds 18077 support, the market expert added.

“We expect the Fed will now more likely hike rates by only 50 basis points in December. In addition to Fed hopes supportive WTI oil prices trading sluggish near $86 a barrel from recent high of $92 a barrel is adding fuel to bull’s rally,” the research analyst at Mehta Equities also said.

Explaining other triggers that have been aiding the Indian markets most, Shikha Mehta, Research Analyst at Equitree Capital Advisors said, “Most companies have seen decent topline growth in Q2, but they’ve been hit by high-cost inventory and freight prices.”

“We believe structurally the index might see new highs, but the commodity prices’ impact and freight costs on earnings might lead to some time and absolute correction temporarily,” she added.

Similarly, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd said, “Nifty is coming out of a broadening wedge formation and closed at important resistance at 18350. If it manages to sustain above that level, then we can anticipate a rise toward 18500, 18600, and 18800 levels.”

On the downside, 18300 is a solid support and the 18100-18000 area will operate as an immediate demand zone, Gour further stated in his comment.

While Apurva Sheth, Head of Market Perspectives, Samco Securities said, “Nifty has created a bullish candle on the weekly chart, maintaining its previous bullish trend. The RSI of the weekly trend oscillator is above the corresponding reference lines, suggesting a positive bias.”

According to the chart pattern, Nifty may see bullishness if it maintains above the 18,300 level, which would take the index up to the 18,600 level and if the index falls below 18,000, profit-taking will begin at 17,800, followed by 17,650, the analyst at Samco Securities further noted.

Sheth urged investors to maintain their upbeat outlook, and with other sectors now contributing, we anticipate strong broad-based buying in the next week.