Waiting for markets to fall @18000? Experts see Nifty heading towards 21000

The rally in Indian markets is nothing short of fast & furious. The Nifty50 hit a fresh record high above 18,000 for the first time on Monday, and experts feel that the rally may not be over yet and is on track to hit 21,000 – but tread with caution.

There is good news for investors who are waiting for a significant dip to enter markets, as experts feel that the Nifty50 has legs to rally towards 20000-21000. 

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Strong flows from retail investors via Systematic Investment Plans (SIPs) which topped Rs 10,000 cr in September, positive net inflows from foreign institutional investors (FIIs), as well as policy initiatives by the government will keep the sentiment intact for bullish momentum.

“Indian equity benchmark indices Nifty has hit much-awaited 18000 marks on Monday. We are in the initial phase of the exuberant bull run which is well supported by earning improvements, record tax collections, and participation of new investors will surely help Nifty make new highs in upcoming months,” Sandeep Matta, Founder, TRADEIT Investment Advisor, said.

“There is no sign of topping out yet and markets are in the early stage of equity bull run which may take Nifty to 21000 level before witnessing a significant correction,” he said.

Matta is of the view that core market segments such as Banks, Auto, Financial sectors are driving the rally now and ready to take nifty to higher levels. “There could be few corrective sessions in between however the same will be considered as buying opportunity,” he added.

Foreign portfolio investors (FPIs) remained net buyers to the tune of Rs 1,997 crore so far in October as India continues to be a competitive investment destination from a long-term perspective.

FPIs have been net buyers for two consecutive months and have invested Rs 26,517 crore in September and Rs 16,459 crore in August, said a PTI report.

“Robust company’s valuations, government reforms, boost up economic activities, improved macro indicators numbers and strong FII buying has certainly strengthened the confidence of market participants which fuelled the Nifty rally to reach its all-time high,” Dr. Ravi Singh, Head of Research & Vice President, Share India, said.

“The existing liquidity in the market due to these factors was the driving force of the primary markets. Pharma, IT, Realty and Banking sectors have contributed the most in this rally and will remain strong in near term also,” he said.

The Nifty50 index crossing 18,000 levels marks the continuation of the bull phase in the India markets. There are strong positive sentiments on the domestic front, even though the global cues are pointing towards increasing risks.

Also Check: Nifty at 18,000: Nifty50's journey from 6,000 to 18,000; check history and major milestones

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)