INSUBCONTINENT EXCLUSIVE:
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.
