The Nifty IT index closed flat on September 10 as reported by ET Now, with Shah of Goldilocks Global Research maintaining his bullish outlook for the sector. According to ET Now, Shah expects the Nifty IT index to potentially rise to 35,000 over the next 12-18 months, identifying 26,000-26,500 as a key base for the IT index and believing AI-related concerns have largely been priced in. He advises investors to take a 12-18 month view and consider a basket of IT stocks or an index rather than individual stock picking, noting that if the Nifty delivers 7%, the IT index might deliver 15%.
As reported by ET Now, Shah believes the Nifty has absorbed significant negative news flow without a major collapse, which he interprets as consolidation. He expects the index to stabilise near the 23,100 support zone after breaking 23,800, stating there is no big case for a collapse from here. The analyst notes that while the large-cap setup remains weak, midcap, smallcap and microcap indices are trading near lifetime highs, with potential for another 7-10% upside in these segments. Market analysts confirm this consolidation trend, with Bajaj Broking noting that "today's advance confirms buyers are still in control, with fresh demand showing up at higher levels."
According to ET Now, Shah observes that the Adani and Jindal groups have outperformed, while the Tata group has lagged, stating 'the winners continue to win and the losers continue to lose'. He prefers market leaders and the top three companies in each sector, saying they offer a higher margin of safety. Shah identifies technology, PSUs and selected midcaps and smallcaps as offering thematic opportunities, noting that 'technology I think the worst is over'. Sectoral performance on September 10 showed Financial Services, Media, and Banking emerged as top performers, while Metal, Pharma, and Auto remained key laggards.
As reported by ET Now, the Nifty IT index was trading 0.4%, or 104 points, lower at 28,810.20 as of 1:50 PM on September 10. On September 10, the Nifty 50 gained 46.30 points to settle at 23,477.80, reclaiming the psychologically important 23,400 level, while the Sensex rose 138.36 points to close at 74,902.59. Shah emphasizes that investors should focus on quality companies and stock-specific opportunities while waiting for reversals in stocks like HDFC Bank. Market analysts suggest a buy-on-dips stance in fundamentally strong names with disciplined risk management as the preferred approach.
