The previous calendar year of 2018 was too volatile . nifty began with the level of 10531 and made a high of 11760 , but this was unsustainable and selling pressure brought the index down to the level of 10862 by the end of 2018.
The annual return on the index was 3.2% ( approx ) i.e. about 350 points . major stock market related events of 2018 were - pnb scam , ilfs default and trade tensions.
The calendar year 2019 started with levels around 10880 and nifty is currently trading at 11950 as of may 30 , 2019 . which is gain of about 1050 points . is there any further room for extra stretch ?
The answer as obvious , depends on many factors . the return of bjp government in centre is a major event of 2019 .
Reasons to be bullish - earning growth , good Q1 result this fiscal , good monsoon
Reasons to be bearish - slowdown in global economy , high valuation of nifty 50 firms overall , pessimistic forecast from IMF on overall economy of the world , volatility
Overall
If all good , levels of 13500 is possible in a year time from now , but probability is that it cannot sustain this level for long . reasons may be earnings and valuation issues . bears will began their selling action from 13500 ( if it reaches ) with full force.
However if negative sentiments come nearby , like excessive selling , default on major firms etc; level of 10k may also be possible ( remember , the free fall of Feb , 2018 )
The market overall seems to be volatile as of now , and no major reasons to worry until global factors come in the forefront.
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