Nifty eyes 20,000: How far can bulls steer index beyond this magical mark?

economictimes.indiatimes.com:

Amid strong optimism in the market, Nifty50 just scaled the 19,900 mark, but many are eagerly awaiting the next big target — the magical 20,000 figure. In just 15 sessions, the NSE flagship index has rallied nearly 900 points from the 19,000 level, hit on June 28, on strong global market cues, signs of an end to the US Federal Reserve's rate tightening cycle, and most importantly, strong foreign investor inflows. The ongoing earnings season on Dalal Street is also lending support to the bulls.

But the question on everyone's mind remains how higher can this bull run Nifty50. The current uptrend in the Nifty is undeniably strong, and there is a possibility that it may surpass the 20,000 mark by the end of this month, said Santosh Meena, Head of Research, Swastika Investmart. He believes if Nifty manages to sustain above 19,800, it could potentially reach not just 20,000 but even 20,200.

Although, from a technical point of view, Nifty is flashing signs of an overbought scenario, opined analysts. «In July, the Nifty index already surged over 650 points (nearly 3% to date) and is now eyeing the 20,000 mark. We have witnessed an overbought scenario, but the bulls are being resilient to let loose their grip on the markets, which certainly showcases their dominance,» Osho Krishan, Sr Analyst — Technical & Derivative Research, Angel One, told ETMarkets.