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Will Sensex correct after scaling 60,000? What tech charts are suggesting

India's benchmark indices have scaled fresh lifetime highs, defying a weak global mood. Does that mean a market correction is on the cards? And, should you really be worried? Let's find out.

Topics
Market Ahead | Evergrande | Bull Market

Nikita Vashisht  |  New Delhi 

TMS Ep7

The 30-pack BSE Sensex claimed the historic 60,000 mark last Friday and marched ahead to hit a record high level of 60,333. Its NSE counterpart, the Nifty50, also touched a new all-time high of 17,948.

The BSE Sensex has climbed its last 10,000 points in just 246 days – and 5,000 of that in just 42 days.

Going forward, while expensive valuations, a cautious global mood amid the crisis, and a possibility of a third Covid wave may trigger mild profit booking in days ahead, most analysts remain optimistic. They suggest that a market correction, if any, should be bought into from a medium-to-long term perspective.

On tech charts, the Sensex looks all set to add another 1,000 points in the next five sessions.

According to Business Standard's Avdhut Bagkar:

  • trading with a strong bullish bias
  • Sensex may hit 61,250 this week
  • Support placed at 59,500
  • Nifty50 may claim 18,100; support at 17,750

Motilal Oswal Financial Services MD & CEO Motilal Oswal said, "The rally in domestic market is driven by positive global cues, strong inflows by FIIs/DIIs, good corporate earnings, falling Covid-19 cases, upbeat corporate commentaries and low cost of capital. Amid the buoyant sentiment and increased activity, market valuation has reached elevated levels and demands consistent delivery on earnings expectations. Given rich valuations, one cannot ignore intermittent volatility."

Fundamentally, the first half of this week will be guided by global cues where investors will track developments around the group, and the second half is expected to be driven by domestic triggers.

On key triggers for this week, Religare Broking's Ajit Mishra said:

  • Aditya Birla Sun Life AMC IPO opens on Wednesday, Sept 29
  • Monthly F&O expiry on Thursday, September 30
  • Auto sales data to come on Friday, October 1
  • Manufacturing PMI data coming on Friday, October 1
  • Paras Defence and Space Tech listing on Friday, October 1

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First Published: Mon, September 27 2021. 09:47 IST
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