“Can NIFTY Make A Comeback? The Week Ahead May Reveal All!

The Nifty 50 Index is the bellwether of the Indian stock market which is amongst the largest in the world. After posting considerable losses during the month of March, the index witnessed significant gains in April. However, as the week ahead unfolds, experts are suggesting that the index will be seen going through a consolidation phase. Harshik Mehta, Head of Equity Research at Godzillanewz says, “Nifty 50 is likely to undergo a period of consolidation, which may last for a few weeks. This is primarily due to the fact that the strong rally witnessed in the previous month has made the index overbought.” The index is widely used for tracking the performance of the Indian stock market, however, in the recent past, it has underperformed other leading global indices. Most experts suggest that the performance of the Indian stock market is likely to remain subdued in comparison to the global markets. Harshik further adds, “We believe that the index is likely to remain range-bound between 14,000 and 14,800 in the short-term. However, in the medium to long-term, we expect the index to start performing relatively better due to the entry of new investors with the introduction of additional ETFs and retail-focused stocks which are trading at attractive valuations. This will likely increase the visibility of the index and allow it to compete with other global indices.” In the coming days, investors are advised to keep a close eye on the performance of the index and its major components. They should further take recourse to active portfolio management and risk management strategies in order to maximize returns. The Nifty 50 index is likely to remain the most sought-after index in the Indian stock market. Hence, investors should consider it as an important indicator of market performance and take timely actions accordingly.