ET Intelligence group: Equity investors who have gone through a turbulent year so far are buoyed at the beginning of the Christmas season by the prospect of the “Santa effect” guaranteeing good returns by the time the year closes. Thanks to the ‘Santa’ impact, the Nifty has delivered an average positive return of 2 per cent in the last two weeks of each calendar year since 2005, except in 2011 when it posted a negative return.
Interestingly, the Nifty Midcap index has also mirrored the trends of the Nifty during the same month of each year and given an average return of 2.9 per cent. In fact, the midcap index posted an average return of more than 2 per cent in six of the 13 years.
A supporting historical trend and gradual pick-up in momentum from Nifty’s recent low of 10,333 level make chartists believe that the ‘Santa’ factor could work again. Neeraj Agarwal, vice-president, Alternative Research, says the immediate resistance for the Nifty is around 10,940 level with the index trading above all its short-term and long-term moving averages, and it could touch 11,000-11,100 levels this month itself. Likewise, if the Nifty midcap index closes above 17,700 this month, it cou ..
Sectorally, technology and metal indices have been outperformers compared with the Nifty when the market finds support from the Santa factor. The technology index has formed the double bottom pattern — a reflection of the bullish sentiment, while the metal index is having lower-top, lower-bottom formation, which shows bearish sentiment.
The Nifty year-to-date return stands at 3.2 per cent so far, and this is the second time in the past five years that positive returns of the Nifty has been restricted to less than 5 per cent.
Have a Nice Day ahead !!
Feel Free to Call Us: 6232995233
Visit : www.TheGRSsolution.com
Visit : www.TheGRSsolution.com
