According to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, the bulls in the Bank Nifty are maintaining strong momentum, propelling the index beyond the 48,000 level. The market sentiment, as a whole, remains bullish, with a robust support base at 47,500. Any retracement toward this support level is viewed as a buying opportunity. The upside potential for the index is anticipated to reach 50,000, signaling sustained optimism among market participants.
Vinod Nair, Head of Research at Geojit Financial Services, noted that market buoyancy persists, driven by investor expectations that concerns over US economic growth will ease by the second half of CY24. Investors are optimistic that the economy will experience a soft landing, aided by the normalization of monetary policy.
Additionally, the USD/INR witnessed a significant decline due to expectations of interest rate cuts in the coming year. The IT index outperformed expectations, reflecting an anticipated increase in demand in the US economy. These factors collectively contribute to the positive outlook in the market, with both technical and fundamental aspects playing a role in shaping investor sentiment.
(With Agency Inputs)
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