Nifty and Sensex gained 5.32% on Friday, September the 20th, 2019, closing at 38014.62 and 11274.20, highest gains in almost a decade. Despite the baby steps of modifications and changes over the past 3 weeks, the somber to bearish mood prevailed in the market after the presentation of Union Budget on July 5th, failed to die. Added to the woes were domestic slowdown across sectors, global slowdown news flows, trade war between US-China, and of late spike in crude oil prices.
Think of it – Nifty and Sensex is higher just by around 6% from its recent lows, which reflected all negative political and economic sentiments, earnings downgrades, global negative sentiments, recent spike in oil prices and risk aversion by FIIs and many more. The tax move itself has led to revision of earnings upgrades, hence we believe that Nifty, Sensex is set for a higher trajectory and a continued rally upto 12500 and 42000 respectively is likely in the next 3-6 months.