By Kapil Shah Technical analyst, Emkay Global Financial ServicesWhen will the Nifty Hit 12,000 Rather that timing the market, we need to understand the nature of this rally and some important trigger levels for the index.
Basically, the recent momentum is widely known as a catch-up rally and we have seen huge inflows from FIIs.
Recent injection of liquidity can be more in form of ETFs.
From a technical perspective, the Nifty faced a mild resistance at its previous high of 11,760, but no structural damage has been observed.
So, till now, the index is in grip of bulls.
In the short term, bears can have an upper hand only below 11,550 level, and in medium term, below 11,300.
On the other hand, a breach above 11,760 can lead to another round of positive move which can extend all the way to 12,000, and subsequently to 12,200.Where Nifty is headed ahead of elections April is an event-packed month and the voting to choose the next Lok Sabha will begin.
It will put the market on a highly volatile ground.
It will be a reality check for momentum growth in the context of earnings growth.
So, one needs to have above-mentioned technical levels in mind.Stocks to play during the elections: We can look at some of the sectors, such as cement, information technology and FMCG.
Among stocks we can focus on ACC, HCL Tech, MM, Marico.