Nifty may see 9446/8965 levels in coming months

August 11, 2017Posted By Admin

After a long rally in Indian and global equity markets we are seeing a sharp correction from past 3-4 trading sessions. The rally was one of the longest and lasted for more than 7 months without any significant correction. Nifty hit a low of 7893 on 26 Dec 2016 and hit a lifetime high of 10137 on 2nd Aug 2017; a 28% upmove from the lows. Rally in equity markets across the globe, heavy buying by domestic mutual funds and increased participation from retail investors through direct and SIP route pushed markets to new highs. And when the markets jump too high in a short span of time without giving entry opportunities to investors corrections are inevitable.

4s55i

We expect the correction to last for atleast 2-3 months and see Nifty recovering to 10000 levels by year end. The long term trend 3-5 years remains extremely positive for Indian markets and corrections should be seen as an opportunity to enter quality stocks at attractive valuations. Our portfolio returns have declined and may fall more in coming months but we firmly believe that once the market stabilize our stocks will outperform the broader market. The corrections are part of bull markets and are required from time to time to prolong the life of the bull run.