Sensex target: Bear grip? Mumbai broker quotes tech charts to say Sensex is heading towards 66,666
Citing technical indicators, an analyst from Choice Broking, a Mumbai-based brokerage firm, says the Sensex has the potential to generate up to 13% above its current level. He says a number of positive technical indicators point to an extreme uptrend.
“In a longer time horizon, the rally is expected to continue up to the magic number of 66,666 over the next few months, which is a 100% extension of the recent trip,” said Sumeet Bagadia, executive director of the brokerage house.
“Sensex broke through the previous resistance at 59,737 and managed to hold above the 60,000 mark. The index flew over the Ichimoku Cloud & Bollinger Band formation. All support indicators like RSI, Stochastic and MACD suggest a rally in the near term, ”he said.
Over the past 18 months, the index has already given more than 135 percent returns. Easy liquidity, improving economic conditions and a rapid vaccination campaign have increased investor risk appetite.
However, recent comments by the US Fed, a showdown in the US Senate over government spending, which threaten an impending government shutdown and have spurred Treasury yields soaring and concerns about slowing economic growth in the United States. a context of low consumer confidence made some investors cautious; but certainly not everyone.
“According to the Fibonacci extension, from 51,802 to 59,737 levels, along with a slight dip, suggested a 50% extension to the 62,222 level, which could be the index’s short-term goal. benchmark for BSE, ”Bagadia said.
However, he did not rule out a profit taking or a correction in the market in the meantime. “An upward or downward movement could be observed while reaching a new stage, but every drop will be a good opportunity for investors,” he said.