See Nifty at 25,000 level by 2024-end, says Rishi Kohli of InCred

livemint.com:

Rishi Kohli, CIO - Hedge Fund Strategies at InCred Alternative Investments, expects the next 2 years to be bullish and advises investors to be long on equities. However, one should get cautious as we head into elections, he said. “There is a lot of talk already that Nifty has over-stretched, etc.

but I do not think that is the case," he added. Edited excerpts: Overall, the next 2 years look bullish from multiple perspectives, so one should be long equities. However, one should get cautious as we head into elections as there is a high probability that the euphoria in markets continues till then and there is an over-extension of markets on the upside which could make them volatile or slightly bearish post elections, irrespective of the outcome.

So remaining long equities and hedging in the run-up to elections for the second half of the year would be prudent from an equity investment perspective. The other strategies that should do well are long-short and options strategies as there should be enough momentum and larger volatility on both sides to take advantage of for such strategies. There is a lot of talk already that Nifty has over-stretched, etc.

but I do not think that is the case. The forward P/E is still not at 2 standard deviations above the mean or anything close to that which is a sign of overvaluation so while it may be in a short-term overbought zone technically, in the long run, neither is it overbought technically nor over-expensive fundamentally. We see Nifty at 25,000 by 2024-end.