The Indian stock market has had an impressive run of late, with the Nifty index surging by over 15 per cent in the last seven weeks. This run of success came as a pleasant surprise for most investors, as it would appear that the markets have shrugged off most of the negatives that had pulled them down in 2020.
However, in the last few days, the index has taken a slight breather and trading has been rather tepid. This could be the result of investors dipping their toes in the market, hoping to buy in before the index resumes its upward trend. Most investors are optimistic that the index will return to its upward trend shortly.
So what’s next for the Nifty? Most analysts are of the opinion that the index is well-poised to move past the 10,200 mark in the coming weeks. This could open up the possibility of a further rise, which could see the Nifty hitting the 10,400 level in the short-term.
One potential factor that could drive growth in the Nifty in the near-term is the upcoming Union Budget. Markets around the world have been eagerly awaiting the Budget, as it could provide a financial stimulus to the Indian economy. This could provide a much-needed boost to the markets, and investors will be watching closely to see how the government plans to boost growth.
It’s also important to note that the Nifty’s recent rally has been largely driven by a few stocks, such as banking, IT and auto. This means that the index could see more gains if these stocks continue to perform well.
In addition, investors need to keep an eye out for any developments in the global markets. We have seen a surge in stock prices around the world as coronavirus vaccines become more widely available. This could present a unique opportunity for investors to capitalise on this trend.
Finally, there is the uncertain economic situation in India. The present government has implemented a number of measures to revamp the economy, but a full recovery will be slow and difficult. Investors will have to watch to see if the government takes any further steps to provide some respite.
Overall, the Nifty has seen a remarkable rally over the last seven weeks. The index could still go further if the right catalysts come into play, but there are a few things that investors need to watch out for. The upcoming Union Budget, the performance of key stocks, and the global developments will all be important for the Nifty’s performance in the near-term.