“D-Street Witnesses Bloodbath Following Lok Sabha Election Results, Expert Views on Market Trends and Opportunities”
Following the Lok Sabha election 2024 results, the D-Street witnessed a bloodbath on Tuesday, June 4. However, in the previous three sessions, domestic benchmark indices have extended advances into the third straight session, ending at new closing highs on Friday, June 7.
Despite a 6% loss on June 4, the domestic benchmark indices are up with modest gains in June thus far. The Nifty 50 index rose roughly 3.4% in the first week of June. As volatility remains high and is expected to continue in the near term, Kapil Shah, Technical Analyst, Emkay Global, and Technical Analysis Trainer at Finlearn Academy, discusses Nifty 50 trends going forward, the broader market outlook, and some sectors and stocks to keep an eye on in an interview with Mint.
Shah believes that the structural integrity of the Nifty 50 remains robust, with potential upward movement beyond 23,300 signaling further progression towards 23,800. He anticipates a bullish trend persisting above 22,800 in the short term, above 22,300 in the midterm, and above 21,800 in the long term.
Regarding the rebound of the Nifty 50 from its present levels, Shah notes that the index has recently broken out of a rectangle pattern, with the pattern target set at the 23,800 level. Sustaining levels above 23,300 will further fortify the Nifty 50.
The Nifty Next 50 has outperformed the Nifty 50, rising by 4.05% in May 2024 and 60.59% in the past year. Shah attributes this outperformance to the composition of both indices, with capital goods stocks contributing significantly to the Nifty Next 50’s performance.
Looking at the broader market outlook, Shah anticipates favourable performance from prominent large-cap stocks and leading mid-cap companies, particularly in the information technology (IT) sector. He also highlights the bullish continuation formation in the FMCG index and opportunities in the beverage sector within the FMCG space.
Regarding Public Sector Undertaking (PSU) stocks, Shah notes that many have undergone substantial ascents and a time-wise correction may be on the horizon. He also identifies breakout stocks to watch out for, including Tech Mahindra, ITBEES, Bayer CropScience, Granules India, Mahanagar Gas, Jyothy Laboratories, and General Insurance Corporation of India.
As investors navigate the volatile market post-election, Shah’s insights provide valuable guidance on market trends, opportunities, and breakout stocks to watch out for. It is essential for investors to consult certified experts before making any investment decisions.
