Tuesday, June 18, 2024

Nifty reclaims 20k mark led by auto stocks

PUNJAB NEWS LINE | November 29, 2023 02:41 PM

NEW DELHI: Nifty reclaimed the 20,000 mark on Wednesday after FIIs turned buyers in the Indian markets.

Nifty is up 148 points at 20,038 points on Wednesday. Hero Motocorp is up 4 per cent, M&M is up 2 per cent.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher, said Nifty finally indicated a breakout above the tough resistance barrier of 19850 zone to improve the bias and further is anticipated to retest the previous peak zone of 20,200 levels in the coming days.

The index has the next visible targets of 20,000 level and thereafter 20,222 level with 19,800-19,850 zone maintained as the important support zone from current levels. The support for the day is seen at 19800 while the resistance is seen at 20,000.

There is a lot of gambling happening in the market now in low grade stocks. These should be avoided, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Investors should take cues from the wisdom of the investment legend Charlie Munger who died on Tuesday, Vijayakumar said. Munger advised investors: “don’t be gamblers, be patient investors.”

Investors should buy quality stocks which are fairly priced, and wait patiently. There is value in largecap banking, IT and autos for patient investors, Vijayakumar said.

A big move in the market is likely after the state election results are known. Perhaps the exit polls on Thursday evening may provide some clues, he added.

Since the global market backdrop continues to be favourable, the rally in India is likely to continue.

The drop in US 10-year bond yield to 4.3 per cent and the dollar index dropping below 103 are positive for equity markets. FIIs have turned buyers responding to the changed reality, he added.


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