Sensex, Nifty, Bank Nifty march to record highs; Q3 results next big trigger

Bulls continued to rule Dalal Street on December 15, with benchmark indices hitting fresh lifetime highs for another day. Sensex hit record high of 71,605 to end at 71,483 on December 15, while NSE Nifty 50 shut shop at 21,456 hitting a record high of 21,492 towards the end of trading session.

Market experts underlined that Indian markets are witnessing a ‘goldilocks’ period, further enthused by the US Federal Reserve’s dovish 2024 outlook, which is keeping foreign investors’ interest intact. But, what is next?

The next big trigger would be the October-December quarter (Q3FY24) results for markets, said Siddhartha Khemka, Head of Retail Research, Broking & Distribution at Motilal Oswal.

“Companies have undergone a strong festive period, which will eventually result in strong Q3 numbers across the board,” he pointed out.

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Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy, also believes that 2024 will be a bullish market.

“Mid-teen returns are expected from Indian stock markets, with the Nifty reaching 23,500 and the Sensex hitting 78,000 by the end of 2024,” he added.

On the other hand, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services predicted another ‘5 percent upside’ for the NSE Nifty 50 in the upcoming 1-2 months.

India’s bullish picture is well-framed. Whether it is the strong GDP forecast by the Reserve Bank of India or foreign inflow momentum, market observers said that the near-term trajectory appeared positive.

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However, with record highs being hit day after day, Ambareesh Baliga, an independent market analyst warned that Indian markets have turned ‘too expensive’ versus peers and recommended investors to exercise caution.

Sameet Chavan, Technical Analyst at Angel One, also said that the markets appear ‘extremely overbought’ and advised investors to keep booking profits at regular intervals.

“As Nifty navigates through uncharted territory, it is difficult to identify the next potential resistance,” he flagged.

But a bull market always tends to have winners, and on December 15 it was banks and IT stocks. The Bank Nifty hit the 48,200 mark for the first time led by gains in Bandhan Bank, SBI, Bank of Baroda and Federal Bank. The Nifty IT index also hit its all time high of 35,947 driven by TCS, Infosys, HCL Tech and Tech Mahindra.

Analysts believe both these segments have plenty to catch up in an easy monetary policy scenario. And, this will be achieved in the present bull run period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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