The Indian stock market has rebounded strongly after the initial post-election sell-off, with the Nifty 50 index breaking through the 23,300 resistance level. Market analysts are now eyeing the next hurdle at 23,500 as the benchmark index gains momentum.

Experts believe the forthcoming Union Budget in 2024 could act as a major catalyst, fueling expectations of a pre-budget rally that may propel the Nifty towards the 24,200 mark. The market is anticipating a growth-oriented budget from the newly elected Modi government.

Avinash Gorakshkar, Head of Research at Profitmart Securities, provided a detailed analysis of the factors shaping the near-to-medium term outlook. He highlighted the interim budget in 2024 and the Diwali festival in 2024 as pivotal events that could drive an 8-10% rally in Indian indices by the year-end, even in a worst-case scenario.

However, Gorakshkar cautioned about a potential sell-off ahead of the pre-budget rally, suggesting the Nifty could revisit the 23,000 level or dip below it. He advised long-term investors to be prepared for bottom fishing opportunities and recommended sectors like realty, auto, capital goods, and banking as potential value picks.

Sumeet Bagadia, Executive Director at Choice Broking, highlighted the resilience of the Indian stock market in the post-COVID era, noting that bull markets tend to outlast bear markets. This robustness has allowed the Dalal Street indices to consistently scale new peaks after pullbacks.

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, provided a longer-term perspective, projecting a 10% year-on-year rise in the Nifty 50 index for 2025, which could potentially take the benchmark to the 27,500-28,000 range by the end of that year.

Looking further ahead, Sumeet Bagadia expects the post-budget rally in 2026 to propel the Nifty 50 towards the 30,000 mark, underscoring the market’s optimism about the Indian economy’s growth trajectory.

While these projections provide a positive outlook, it’s crucial for investors to exercise caution and seek advice from certified experts before making any investment decisions.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Latwate. We advise investors to check with certified experts before making any investment decisions.