As Dalal Street entered Samvat 2080, the New Year as per the Vikrami calendar, Zee Business Managing Editor Anil Singhvi expects the index to scale fresh highs in the year ahead. He believes that a decent outcome of the 2024 general elections will help the domestic market outperform its global peers. The market wizard sees a higher range for the Nifty50 emerging at 21,000-21,500 levels with strong support coming in at 18,000-18,500 levels.
He points out two kinds of risks to the upside in the domestic market:
Any major negative cue in the global markets
Failure of the current central government to return to power in 2024
Where can investors make money on Dalal Street?
The market expert believes that while strong buying may continue in the pharma sector, chemical stocks are due for a re-rating, and IT as well as AI-related stocks may attract strong investor interest. He also expects strength in liquor-, yarn- and e-commerce platform-related stocks.
Here are his Diwali picks
Buy Aarti Industries shares
Targets for next Diwali: Rs 675 and Rs 800
Three-year target: Rs 1,200
Buy Share India Securities shares
Targets for next Diwali: Rs 1,800 and Rs 2,100
Targets for the next 2-3 years: Rs 2,500 and Rs 3,000
Buy United Spirits shares
One-year targets: Rs 1,400 and Rs 1,550
Hold for three years
Buy SBFC Finance shares
Targets for next Diwali: Rs 120 and Rs 145
Here’s how Anil Singhvi views global markets
The market wizard expects new highs to emerge on Wall Street, with the tech stocks-heavy Nasdaq Composite expected to outperform the Dow Jones Industrial Average blue-chip index. The US market may stage big moves on the upside on any sign of a reduction in benchmark interest rates, he says.
Singhvi also expects an end to global political uncertainties during the course of the year.
He believes crude oil prices to ease to as low as $55 per barrel and expects levels to the tune of 39,000-40,000 to emerge in the Dow Jones gauge. He views geopolitical tensions and higher-for-longer interest rates as unknown and known risks to the upside, respectively.
Catch highlights of the muhurat trading session here
