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Stock Market: Nifty could gain 1,000 points in September; 20,432 on the cards: JM Financial
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Indian equity markets at all time highs: JM Financial anticipates a potential 1,000-point surge in the NSE Nifty 50 during September, according to an ET report. JM Financial has set a target of 20,432. This target, based on Friday’s closing price, implies a 4.6% upswing in Nifty 50 from Monday’s closing level of 19,528.
The brokerage identifies Punjab National Bank (PNB), Hindalco, LTI Mindtree, GAIL, and ONGC as the ‘thrust’ stocks, while Reliance Industries and ITC are being considered the ‘bargain’ picks as of now.
Rahul Sharma, Director at JM Financial Services, noted that after five weeks of continuous decline, there is a decisive upturn on the weekly charts. “19,230 was the final failed blow by the bears and a close above 20 DEMA of 19,404 has opened floodgates for a big upside in September,” he said in a note dated September 3.
JM advises clients to maintain a bullish stance with a stop loss at 19,230. The brokerage foresees a shift in investor interest from mid- and small-cap stocks to large-cap stocks and suggests profit booking. JM Financial said that momentum indicators suggest overbought conditions in mid and small cap categories following recent gains.
In 2023, the BSE Midcap index has risen by approximately 25%, while the small-cap index has surged by nearly 30%. The BSE Sensex and Nifty 50 have each gained 7.3% in 2023 so far.
JM also forecasts a potential upside for the Bank Nifty, which experienced the liquidation of bearish bets on Friday. With an index closure at 44,578 on Monday, it may climb towards the levels of 45,000 and 45,471.
Rahul Sharma recommends information technology (IT), public sector enterprises (PSE), metals, and chemicals as the favored sectors for investment throughout the remainder of 2023.
The brokerage identifies Punjab National Bank (PNB), Hindalco, LTI Mindtree, GAIL, and ONGC as the ‘thrust’ stocks, while Reliance Industries and ITC are being considered the ‘bargain’ picks as of now.
Rahul Sharma, Director at JM Financial Services, noted that after five weeks of continuous decline, there is a decisive upturn on the weekly charts. “19,230 was the final failed blow by the bears and a close above 20 DEMA of 19,404 has opened floodgates for a big upside in September,” he said in a note dated September 3.
JM advises clients to maintain a bullish stance with a stop loss at 19,230. The brokerage foresees a shift in investor interest from mid- and small-cap stocks to large-cap stocks and suggests profit booking. JM Financial said that momentum indicators suggest overbought conditions in mid and small cap categories following recent gains.
In 2023, the BSE Midcap index has risen by approximately 25%, while the small-cap index has surged by nearly 30%. The BSE Sensex and Nifty 50 have each gained 7.3% in 2023 so far.
JM also forecasts a potential upside for the Bank Nifty, which experienced the liquidation of bearish bets on Friday. With an index closure at 44,578 on Monday, it may climb towards the levels of 45,000 and 45,471.
Rahul Sharma recommends information technology (IT), public sector enterprises (PSE), metals, and chemicals as the favored sectors for investment throughout the remainder of 2023.
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