Election verdict likely to push Nifty towards 21,000-22,500 in next 12-18 months; 30 stocks to bet on
The US Federal Reserve paused hiking interest rates and is cautiously optimistic about the economy. The Fed Rates are at 5-5.25%.
Inflation is also around 3.2%, which is comforting and probably the reason why the Fed has paused hikes.
The interest rates are back to 2007 levels. Liquidity conditions are tight and all leading indicators like copper prices and crude prices are beginning to show signs of revival and might trend upwards suggesting a further revival in the economy.
Some layoffs are happening in the services sector which is a cause of concern.
The Dollar Index (DXY) has retraced to 102.9 level after hitting 107 on the upside.
That establishes a range between 100-107 with the current price being right in the middle. Any fall below 100 might trigger a sustainable rally in the emerging markets, and any rise above 107 level might see all round selling in the risk assets.
Gold hit an all-time high at around USD 2075 levels.
All timeframes are indicating bullish momentum in the Gold and it might soon touch $2500 per ounce.
Silver is showing better momentum in comparison to Gold and might outperform it in the recent future.
So, things are very moderately positive as far as international markets are concerned.
Coming back to Indian Markets, India VIX at around 12.38 is suggesting a benign environment.
The Nifty50 daily, weekly, and monthly charts suggest a positive trend. Momentum on daily, weekly and monthly charts are in the bullish range and therefore Nifty may further move up in the times to come.
The ultimate target of Nifty is in the range of 21000-22500 in the next 12- 18 months, suggesting a 10-15% rise from the current levels on earnings front 12 months trailing EPS is Rs 936 and projected EPS of
