Market Outlook: Prashant Shah, co-founder of DefinedEdge Says that metal and defense sectors can surprise the market in Samvat 2082. He says the Metal Index is showing an interesting ‘W’ pattern and the P&F chart is showing a ‘Pattern Retest’ formation near the bottom. This is an indication that this sector can continue its growth. Chart formation is indicating continued bullish trend in defense stocks also.
Nifty may cross 30000 in mid term
He believes that Nifty can cross 27,400 in the short term and 30,000 in the mid term. Speaking to Moneycontrol, he said, “At this time, the broad setup of the market is not indicating any major decline. However, in the short term, technical corrections are natural from time to time and it is also necessary for the index to remain healthy.”
On the Point and Figure (P&F) chart, Nifty has broken all the major bearish trendlines drawn from previous important tops. When the index enters this zone, it is good to “call it new”. This is a phase in which the index often continues to rise and as long as this formation holds, new highs are achieved.
Currently, the P&F patterns are showing bullish signals. With this bullishness, Nifty may go around 26,420 and 27,400 in the short term. At the same time, in the mid-term it may see a level of 30,000 and beyond. But the chart structure is clearly indicating continuation of the uptrend.
It is healthy and natural to see technical corrections every now and then.
However, in the short term we may see technical corrections intermittently. This is also natural and healthy for the market. But at this time the broad setup of the market is not indicating any major decline. During this time, the market may also be seen moving within a limited range. But as the market gradually moves upwards, better performance will be seen in selected stocks.
Chart formations of both Nifty and Sensex are giving bullish signals.
Is Sensex ready to reach the level of 1 lakh in Samvat 2082? In response to this, Prashant Shah said that the chart formations of both Nifty and Sensex are indicating bullishness. On the Point and Figure charts, medium term bullish vertical counts are still open for the Sensex, suggesting further upside potential in the times to come.
The overall trend of the market is long term bullish.
The figure of 1 lakh will be achieved in Samvat 2082 or a little beyond that, it is not a big deal. The big thing is that the overall trend of the market is long term bullishness. In such a period, there is a possibility of fluctuations in a wide range from time to time. In such a situation, a stock-specific approach focusing on moment and strength may prove to be the best investment strategy.
Market outlook: Foreign money will come back to India, index can reach new heights
Metal and defense sectors can surprise in the new Samvat
According to you, which sectors can surprise the market in Samvat 2082? On this, Prashant said that metal and defense sectors can surprise the market in Samvat 2082. He says the Metal Index is showing an interesting ‘W’ pattern and the P&F chart is showing a ‘Pattern Retest’ formation near the bottom. This is an indication that this sector can continue its growth.
Defense sector can also surprise. After a massive rally earlier this year, it has seen a strong consolidation over the past few months. Chart formation is also indicating bullishness. A strong anchor column is visible at the base. Due to this, once again there are signs of trend reversal and acceleration.
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