As the year comes to a close everyone has their eyes set on Nifty to ring in the new year. The Indian stock market is often seen as a harbinger of future trends and the Nifty is of particular interest as it follows the mood of the market more closely than other indicators.
The Nifty 50 Index is a good measure of the prevailing mood of the market is going to be in the coming months since it follows the performance of the 50 largest stocks in India by market capitalization.
With the easing of economic restrictions and the improving sentiments in global markets, one can expect the Nifty to remain buoyant in the immediate future. Many analysts and experts expect the Nifty to begin the year with an upward trend given the positive sentiment.
Looking at the technical indicators, it appears that the Nifty is likely to close the year strongly and dip below the psychological barrier of 11500 towards the end of January 2021. If this prediction holds true, the Nifty may potentially close near 12000 at the end of the first quarter of 2021.
From a fundamental perspective, the recent decline in inflation and the continuing positive outlook on the economy paint a favorable picture for the stock markets in the coming quarters. Furthermore, the expected budget measures for the corporate sector and small businesses in India appear to be further strengthening the positive sentiment.
It is expected that if the markets witness a sustained positive trend in the coming quarters, the Nifty can reach the 15000 mark by the end of 2021. However, it is also important to remember that the stock markets are unpredictable and any unforeseen economic or political developments could adversely affect the market’s outlook and sentiments.
Overall, the Nifty is likely to end the coming year on a positive note and investors would be wise to take advantage of short-term opportunities and also invest for a longer term to reap maximum returns.