As Nifty crosses milestone of 22K points, brokerages advise caution

NEW DELHI: As the Nifty hit an all-time high of 22,000 points, brokerages have advised caution and suggested profit booking in small-cap space.

Pranav Haridasan, MD and CEO at Axis Securities said the IT sector has led the Nifty rally this month and has spiked significantly in the last two trading sessions because of decent results backed by cheaper valuations.

“However, the recent upswing warrants a certain degree of caution as, many times, such sharp rallies do not sustain. Thus, we believe that the near-term view will be cautious and suggest profit booking in areas of exuberance, especially in the small-cap space,” Haridasan said.

Paras Matalia, Fund Manager, SAMCO Mutual Fund said, "The setup for 2023 was very powerful as its previous calendar year witnessed only 10 new 52 week highs, while for 2024, its previous calendar year saw a staggering 29 new 52 week highs. Today markets opened at new life time highs marking the second new life time high in just 15 days of calendar year 2024. This indicates that it is like a mature adult bull market rather than a young and raging one. Investors should ride this bull market till it lasts while keeping a very close eye on the markets for weaknesses."

Vinod Nair, Head of Research, Geojit Financial Services said, "The market gained momentum, led by the uptick in the IT index with the growing optimism about increased discretionary spending and strong deal wins. The US bond yield edged lower as market participants bet on the FED easing cycle, which is expected to start in March. Investors are likely to take a more measured approach due to the release of Chinese GDP and UK inflation data this week."c