Nifty Eyes 25,000 on India-Pakistan Ceasefire Boost
The Indian equity market is set to make a strong start on Monday, driven by the de-escalation of tensions between India and Pakistan. The S&P BSE Nifty 50, also known as the GIFT Nifty, is expected to break above the 25,000 mark, a significant milestone in the Indian stock market. However, SEBI-registered analysts Jeet Bhayani and Bharat Sharma are urging traders to remain cautious, highlighting near-term volatility and emphasizing short-term strategies over positional bets.
The ceasefire agreement between India and Pakistan, announced on Friday, has brought relief to the market, which had been volatile in recent weeks due to the ongoing tensions between the two nations. The agreement has removed a major overhang on the market, allowing traders to focus on the fundamentals of the Indian economy.
The Nifty 50 has been trading in a narrow range of 24,000 to 25,000 in the past few weeks, with the index unable to break above the 25,000 mark due to the uncertainty surrounding the India-Pakistan standoff. However, with the ceasefire agreement in place, the index is likely to make a strong attempt to break above the 25,000 mark.
Jeet Bhayani, a SEBI-registered analyst, said, “The ceasefire agreement has removed a major overhang on the market, and we expect the Nifty to make a strong start on Monday. However, traders should remain cautious, as the market is likely to remain volatile in the near term.”
Bhayani added, “We recommend short-term strategies, such as intraday trading or swing trading, over positional bets. This is because the market is likely to be influenced by global events, such as the US-China trade talks, and domestic events, such as the upcoming budget.”
Bharat Sharma, another SEBI-registered analyst, said, “The Nifty has been trading in a narrow range, and we expect it to break above the 25,000 mark in the near term. However, traders should be aware of key supports at 24,000 and 23,800, which could act as a floor for the index.”
Sharma added, “We recommend traders to focus on individual stocks with strong fundamentals, rather than trying to trade the broader market. This is because individual stocks are more likely to be influenced by their own fundamentals, rather than global or domestic events.”
The Nifty 50 has been trading in a bullish trend in the past few months, driven by the strong performance of the Indian economy. The index has broken above several key resistance levels, including 22,000 and 23,000, and is now eyeing the 25,000 mark.
The Indian economy has been growing at a rapid pace, driven by the government’s reforms and the strong performance of the manufacturing sector. The country’s GDP growth rate has been increasing steadily, and is expected to reach 7.5% in the current fiscal year.
The market is also expected to be influenced by the upcoming budget, which is scheduled to be presented on July 5. The budget is likely to have a significant impact on the market, as it will provide an insight into the government’s plans for the economy.
In conclusion, the Nifty 50 is expected to make a strong start on Monday, driven by the de-escalation of tensions between India and Pakistan. However, traders should remain cautious, as the market is likely to remain volatile in the near term. Key supports lie at 24,000 and 23,800, which could act as a floor for the index.
