N Jayakumar, MD, Prime Securities, says the Nifty may be range-bound in a 10% range – 18,600-18,700 on the low to 20,200-20,000 around Diwali. But we may find that we are expensive and therefore that range may continue to be in that 8-10% range from 18,600-18,700 to about 20,200. Jayakumar further says: “For a long time, tech and financials led the way.
New rallies need to happen in new sectors. Defence rally has played out. Pharma theme has taken off in the last one quarter and it is not a one quarter theme.
It is going to be there for multiple quarters. There are massive tailwinds in its favour.”It has been one of the strongest summer rallies of all time; we are calling it the summer rally of 2023. Has the summer rally changed because summer is over and even monsoons are getting over now?There is no question that money will keep coming in, the problem is that there is enough and more in terms of supply of paper that is there which is either in terms of promoter selling, blocks being transacted in the market and private equity funds getting exits.
So, there is a fair amount of supply of paper also. From that perspective, the index may be range-bound in a 10% range – 18,600-18,700 on the low to 20,200-20,000 around Diwali. But we may find that we are expensive and therefore that range may continue to be in that 8-10% range from 18,600-18,700 to about 20,200.Is the bias of the range up or down?The bias needs to be towards stocks rather than towards the indices, because I do not think any individual investor actually captures the Nifty movements just by investing in say ETFs or whatever.
Read more on economictimes.indiatimes.com