While the Nifty 50 slipped into correction, it rebounded from key support levels. So how is the index likely to trend now?
And is there further downside possibility in the short-term?
Episode 04 of the Prime Podcast
The Nifty 50 has scaled new highs, displaying strength over the past few months. Is the rally in the Nifty 50 over or can it continue?
Prime Podcast S01 Ep03.
In this third episode of the PrimeInvestor podcast, we delve into sector funds and the latest news events that have a significant impact on the markets and your investments.
As observed in the previous update on targets for the Nifty 50, the index remained strong and also moved pretty close the target zone of 18,700-18,750. The index recorded a high of 18,662 on May 30 and has since been in a consolidation. In this update, we take a quick look at the short-term outlook for the Nifty 50 index and focus on a more detailed outlook for the broader markets and interesting sectors.
A lot has happened since our previous market update, when we discussed if the worst was over for the Nifty 50. In that update, we had mentioned that the level of 17,850 on the upside and 16,900 on the lower end are the key markers to focus on. It was also highlighted that a breakout past 17,850 could pave the way for a rally to the 18,350-18,400 zone.
The Nifty 50 index has managed the latter, breaking above 17,850 and reaching the target zone of 18,350-18,400. The question now is what is in store for the Nifty 50 index. We will look at the short-term perspective here, to address this question.
The bearish view on the Nifty 50 index shared over the past couple of posts has played out, and the Nifty 50 index hit the target of 16,700-16,900 mentioned earlier. Now, after recording a low of 16,828 on March 20, the index has been on a recovery path. The key question, then, would be – is worst is over for the Nifty 50? As always, we will try to address this question using our favourite charting tools including the breadth indicators.
In the past couple of posts on the Nifty 50 outlook, we have been voicing a bearish view for the Nifty 50 index. This has played out as per expectations. The index almost achieved the first target of 17,150-17,200 that was mentioned a couple of posts ago. In the previous update, we had mentioned the possibility of a slide to the 16,700-16,900 zone.
Let us assess if this target is likely to be achieved or not.
The Nifty Next 50 houses the 50 top companies by market capitalisation, after the Nifty 50. This index caught the limelight over the past month for featuring a handful of the Adani group stocks.
As we had pointed out a couple of weeks ago in our write-up on Adani stocks and index funds, the presence of a few shaky stocks in an index is not reason enough to exit it. But even before the Adani-fuelled upheaval, the Nifty Next 50’s once-outstanding performance was being eroded.
After the Hindenburg bombshell tanked Adani stocks, the faith that some investors placed in index investing seems to have been shaken. With the Nifty 50 and Nifty Next 50 featuring seven Adani group stocks between them, PrimeInvestor received many queries soon after the news broke.
In this post, we shall discuss a brief short-term technical outlook for the Nifty 50 index and some interesting statistics which will be a follow-through to what we discussed in the previous post. Let us get started with the short-term technical outlook.