Nifty Can Aim To Reach 25,000, Claim Experts

As per experts, Nifty is set to reach 25,000 with a potential downside of 23,900. Stocks including Maruti, M&M, Tata Motors, Sun Pharma, Larsen & Toubro, ITC, Tata Steel, Waaree Energy, Hindustan Zinc, and Himatsingka Seide could set the tone for the upward trajectory.

Sudeep Shah, Head Technical & Derivatives Research, SBI Securities said that Nifty is set to witness a consolidation in the range of 23,800 to 24,400, which is also the 100-day exponential moving average. If the 50-share barometer falls below 23,800-mark, it could slip between 23,500-23,400 levels. However, since the past 18 years, Nifty has always given a stellar performance during December. Of the 18 occasions, Nifty has posted average gains of 4% on 12 sessions, while on the remaining it ended with an average loss of 1.75%.

While advising to keep a long-term perspective, Shah advised investors to buy large-cap and midcap stocks at attractive prices. He expects IT, defence and realty to outperform. However, oil & gas, auto and FMCG could remain under pressure.

Mehul Kothari, AVP Technical Research, Anand Rathi Shares and Stock Brokers said that as RSI levels are in a comfortable range, the overall price action suggests formation of inverse head-and-shoulders pattern, which can push Nifty above 24,350. This could steer the index towards 25,000. While FII short long-short ratio in index futures is at 33%, December can prove to be an optimism-driven month for the markets. On the downside, immediate support is in the range of 23,900 and 23,700, in which close above 24,350 is a sign of a bullish trajectory.

While advising investors to keep an optimistic outlook, he reiterated concerns about geopolitical scenarios that can disrupt market sentiments. He anticipates strong performance from large-cap stocks including Maruti, M&M, and Tata Motors. He also suggested midcap stocks including Waaree Energy, Hindustan Zinc, and Himatsingka, buoyed by strong fundamentals and technical factors.