The stock market is showing strong signs of moving towards a record high soon, according to market experts. After the Nifty closed above 26,000 recently, analysts believe that the index could touch a new peak in the first week of November if the current momentum continues.
Shailendra Bhatnagar, Chief Analyst and Editor – Markets at Business Today Television, said the Nifty’s performance in October has been strong, gaining nearly 5.8%. “We’ve closed above 26,000 yesterday, so that’s a very big plus. Everything is in sync. There is no reason why the first week of November should not see a fresh peak on the Nifty. We will then evaluate where the market goes from 26,200 to 26,700,” he said.
Experts also say that the broader market, including mid-cap and small-cap stocks, is doing well.
Rajesh Palviya, Senior Vice President at Axis Securities Limited, said positive sentiment and sector rotation are supporting the rally. “Looking at the broader market, we believe there is a high possibility that Nifty could scale up to a new level in the November series. Bank Nifty is also showing strength and could rise to 58,800–59,000. A minor fall should be seen as a buying opportunity as long as Nifty trades above the 25,800 zone,” Palviya said.
He added that sectors like power, metals, banking, and automobiles are showing signs of buying activity. “Banking remains a strong theme, with IndusInd Bank and State Bank of India looking promising. In the power sector, Tata Power and Suzlon are expected to continue their upward trend. From the metal space, Tata Steel is our preferred choice, and it could move towards Rs 190–195 if it stays above Rs 180,” Palviya said.
Overall, experts believe that if market sentiment remains positive and no major global shocks occur, Indian indices could hit new record highs in early November.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)