Technical forecast: Most Nifty50 stocks signal a bullish bias for 2017

With 2017 setting in, analysts are getting down to forecast what is in store for the stock market in the year ahead. Many market participants have predicted that the Nifty could touch 9,600 in the months ahead based on various assumptions.

Analysts, who make forecasts on the basis of technical charts, say majority of the 50 stocks in the Nifty are signaling a bullish bias for the current year. While 21 index constituents have already seen correction based on price and time maturity, and are set to begin fresh uptrend, 12 stocks have already begun a fresh uptrend.

Six stocks have continued uptrend and outperformed in the corrective phase, while only 5 stocks indicate that the corrective phase is yet to approach maturity. Overall, 39 of the 50 stocks, which represent 78% of the Nifty weightage are pointing toward a positive outlook in the coming year. Analysts said the current levels provide an opportunity to start accumulating quality stocks to ride the expected up-move in the current year.


“We expect the Nifty to conclude its current corrective phase going into 2017 and resolve higher towards 9,600 over the next 12-15 months which provides an upside of 20% from the current levels,“ said Dharmesh Shah, head of technicals, ICICI Secutities. “We do not foresee the index sustaining below its major value area placed around 7,500 region.“