The Indian benchmark index Nifty Fifty is making a strong push towards consolidation this week, setting a bullish trend for investors.
The index was trading near its all-time peak at the beginning of the week and is expected to continue its upward trajectory. With the recent bull run, investors seem to be betting big on the index, with some expecting it to outpace the market over the next few weeks.
The index which was mostly range-bound in the last few weeks, rose to 16,700 levels in the last session, just 14 points shy of its all-time high of 16,714 seen in February.
Nifty fifty is now expected to break its all-time high sooner rather than later, despite the continuing state of global economic uncertainty.
Multiple factors are driving the increase in the benchmark index, including a strong flow of foreign investments, optimism about the government’s economic policies, and improved liquidity conditions in the economy.
Investors are relying on the Indian corporate sector, which is expected to deliver robust earnings in the current quarter and beyond. This, in addition to the government’s recently announced economic stimulus package, is likely to boost the index further.
The index is expected to consolidate around the 16,700 mark this week, with some analysts expecting a further upswing.
Given the favourable economic conditions, it seems like Nifty Fifty may finally start to relatively outperform the market. Investors are eyeing the index with eagerness, and are closely watching the Nifty 50 for any intraday or long-term breakout.
Overall, this week is likely to be an exciting one for investors, as Nifty Fifty looks to consolidate its position and may finally start to relatively outperform the market.