On May 23, 2024, the Nifty 50 index experienced some notable movements and projections. Here are the key highlights:
- Market Performance: The Nifty 50 index saw a slight increase, closing above the 22,000 mark. This gain was driven by positive sentiment in certain sectors despite broader global economic concerns (mint).
- Technical Analysis: Analysts observed that the Nifty 50 formed a small positive candle on the daily chart, indicating a temporary pause after a sharp decline. The index found support around the 21,900 level, and there is a possibility of a minor upside bounce in the short term (mint).
- Goldman Sachs Outlook: Goldman Sachs revised its Nifty 50 target to 23,500 for 2024, citing favorable macroeconomic conditions, robust earnings growth, and anticipated rate cuts by the Reserve Bank of India in the third quarter. They also highlighted that India’s GDP growth is expected to remain resilient at 6.2% for the year (mint).
- Investment Strategies: Given the prevailing market conditions, some analysts suggest a strategy of “sell on rise” might be more opportune than “buy on dip,” due to the current bearish sentiment and technical resistance levels at 22,200 (mint).
Overall, while the short-term trend appears weak, the medium to long-term outlook remains positive with expected macroeconomic improvements and strong corporate earnings growth.