Expert view: Nifty 50's potential upward move above 23,300 could lead towards 23,800, says Kapil Shah of Emkay Global
Expert view: Following the Lok Sabha election 2024 results, the D-Street witnessed a bloodbath on Tuesday, June 4. However, in the previous three sessions, domestic benchmark indices have extended advances into the third straight session, ending at new closing highs on Friday, June 7.
Despite a 6% loss on June 4, the domestic benchmark indices are up with modest gains in June thus far. The Nifty 50 index rose roughly 3.4% in the first week of June.
As volatility remains high and is expected to continue in the near term, Kapil Shah, Technical Analyst, Emkay Global, and Technical Analysis Trainer at Finlearn Academy, discusses Nifty 50 trends going forward, the broader market outlook, and some sectors and stocks to keep an eye on in an interview with Mint. Also Read: Nifty 50 continues its wild swings; how should investors play this volatility?The structural integrity of the Nifty 50 remains robust, although there have been noted changes in texture.
The Nifty 50 Index currently resides at the previous peak of 23,300, representing a level of mild resistance. A potential upward movement beyond 23,300 could signify a further progression towards 23,800.
In the short term, it is expected that the bullish trend will persist above 22,800, while in the midterm, this trend is anticipated above 22,300, and in the long term, it should be upheld above 21,800.The index has recently broken out of a rectangle pattern, with the pattern target set at the 23,800 level. Sustaining levels above 23,300 will further fortify the Nifty 50.Also Read: A weaker mandate for NDA may trigger a shift in policies, but the macro backdrop may not change materially: Emkay GlobalIt is essential to examine the composition of both the Nifty 50 and Nifty Next
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