The MD of Kotak Mahindra AMC alerts investors: Do remember that this journey is both forward as well as backward. Nasdaq went so backwards that it took 17 years to come back to the previous peak
FinTech BizNews Service
Mumbai, August 1, 2024: Today, the benchmark indices nifty/ Sensex registered a fresh all time high of 25078.30/82129.49. The nifty ends 53 points higher while the Sensex was up by 126 points. Shrikant Chouhan, Head Equity Research, Kotak Securities, explains: “Among sectors, Energy index gained 2 percent whereas Media and Reality indices shed over 1.75 percent. Technically, after a gap up opening the Nifty/ Sensex made a fresh all time high of 25078.30/82129.49 but witnessed intraday profit booking at higher levels. However, the short-term texture of the market is still in to the positive side. We are of the view that, as long as the index is trading above 24950/81500 the bullish sentiment is likely to continue. On the higher side, the market could rally up to 25100-25200/82000-82300. On the flip side, below 24950/81500 the selling pressure is likely to accelerate. Below the same, the market could retest the level of 24850-24800/81200-81000. Oil prices continued to climb in early Asian trading on Thursday, building on significant gains from the previous session. This increase followed the assassination of a Hamas leader in Iran, which heightened the risk of a broader Middle East conflict, along with indications of robust oil demand in the US. The Federal Reserve maintained its current benchmark rate, and Fed Chair Jerome Powell suggested that a rate cut in September is possible if economic data maintains its current trajectory. In the US, pending home sales jumped by 4.8%, significantly surpassing the expected 1.4%, indicating a strong housing market. Meanwhile, India's manufacturing PMI came in at 58.1, slightly below the forecast of 59. US unemployment claims and PMI data are set to be closely monitored later today.”
Nifty has crossed the 25000 milestone today. Nilesh Shah, MD, Kotak Mahindra AMC, has an important guidance on Nifty crossing this milestone: “Nifty milestones are a journey and not a destination. Do remember that this journey is both forward as well as backward. Nasdaq went so backwards that it took 17 years to come back to the previous peak. Invest in the market as per your risk appetite, have a long-term horizon, significantly moderate your return expectations and follow the dharma of asset allocation"
