Nifty 50 index forecast: Will Indian stocks retest the all-time high?

August 09, 2023 07:35 PM PDT | By Invezz

Nifty 50 index forecast: Will Indian stocks retest the all-time high? — Image source: Invezz

RBI interest rate decision

The Nifty 50 index, which tracks the top Indian companies, has done well in the past few months. Like some of its European peers like the CAC 40 and DAX index, it recently moved to its highest point on record. It has jumped by over 16% from the lowest level in April.

The next important catalyst for the Nifty 50 index is the upcoming interest rate decision by the RBI. As I wrote in this report, most analysts believe that the RBI will leave interest rates unchanged at 6.5%

The exact move will not have a direct impact on the Nifty 50 and the BSE indices. Instead, the two will react to the forward guidance by the bank. A sign that it will start cutting rates earlier than Q1 of 2024 will be a positive thing for Indian stocks.

The biggest gainers in the Nifty 50 index on Thursday were Adani Enterprises and Adani Ports, whose shares jumped by more than 1.25%. These stocks rose after a Bloomberg report said that Adani was considering selling the $6 billion Wilmar stake.

Adani has not confirmed the reporting. Such a move will provide it with the funds it needs to pay off some of its debt. Based on Wilmar’s $6.7 billion valuation, Adani’s stake is estimated to be worth about $3 billion.

After plunging a few months ago, Adani Enterprises’ share price has risen by over 150% from the YTD low. It remains sharply lower than the YTD high. Other top performers in the Nifty 50 index were Oil & Natural Gas, Bharat Petroleum, and Cipla.

Nifty 50 index forecast

The daily chart shows that the Nifty 50 index has been in a strong bullish trend in the past few months. It recently flipped the important resistance at ₹18,887 (November 30th 2022 high) into a support. The index is being supported by the 50-day and 100-day moving averages even as the MACD forms a bearish divergence pattern.

The outlook for Indian stocks is bullish, with the immediate target price being at ₹19,991, the highest point in July. This view will become invalid if the price moves below ₹19,290.

The post Nifty 50 index forecast: Will Indian stocks retest the all-time high? appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.