The domestic stock market has seen a good recovery after the steep fall in March. The Sensex is only 2% below this year’s top. Market watchers believe that the stock market can reach Diwali at this level. Because the market will be supported by foreign investment and the concessions being received from the central government under the unlock process. At the same time, the Nifty-50 index has gained 0.80% and the BSE Sensex has gained 0.61% in the last five trading days.
Estimated to reach the highest level of the year
Under the economic reforms, with the central government constantly relaxing the relief package and policies, the market can touch the top of this year. But, due to weak global cues in the last two weeks, the market has also seen a lot of upheavals. However, during this time also the market has given good returns to investors. The Nifty Bank Index rose 4% in six trading days. Apart from this, the BSE Mid Cap has seen a gain of 2.43%. But, will the market grow next week? Will global and domestic signals touch the market’s highest level in the coming week?
Market support with better quarterly results
Market experts believe that the stock market may remain positive in the coming week. This may be supported by the announcement of a relief package in the US and better quarterly results for domestic companies. Nirali Shah, senior research analyst at SAMCO Securities, says the quarterly results of domestic companies could support the index in the coming business days. If no negative news comes.
Investment by foreign investors
Foreign institutional investors (FIIs) will also help the market grow. Foreign investors have invested a total of Rs 7,375.72 crore in the Indian stock market in the last five trading days. Whereas, this month the total investment in debt and fairness by foreign investors has gone up to Rs 17,500 crore.
Sector change advice
The IT and Pharma sector has witnessed a great boom in the market. Both sector stocks have booked profit above the benchmark. CLSA analyst says that investors should change the sector within the second half of the current financial year. Because the trends of the last 10 years show that 60% of the stocks that do well in the first 9 months of the calendar year do not perform well in the last three months of the year. As such, CLSA is advising investors to shift to banking and cement stocks.
Investors advised buying in the fall
At the same time, Nagaraj Shetty, technical research analyst at HDFC Securities, says that based on this week’s technical chart, the Nifty can touch 12025 levels in the coming week. Apart from this, Samit Chavan of Angel Broking advises investors to buy in the fall.