Nifty Continues to Reap Positives in December, Poised to Continue Growth According to the research, Nifty closed higher in December, close to 71 per cent of the time in 17 years since 2000, and has consistently delivered positive returns towards the year's end.
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The Nifty index has displayed consistent patterns of positive returns every December over the last 24 years, according to research by Bajaj Broking.
According to the research, Nifty closed higher in December, close to 71 per cent of the time in 17 years since 2000, and has consistently delivered positive returns towards the year's end.
However, the broking company's research team said, "It is a seasonal pattern which is derived from data analysis that we have observed. No specific reason behind December being a positive month for the Indian Market."
Based on the patterns and current market analysis, Bajaj Broking said that it anticipates that Indian markets will continue to perform well and the Nifty will hit target levels between 24,800 and 25,200 points, mainly driven by factors like optimism and technical indicators such as Fibonacci retracement levels, a tool used to predict potential price movements.
Bajaj Broking also said while the outlook seems positive, volatility might be persistent due to events such as RBI's Monetary Policy Announcement and US Federal Reserve (FOMC) interest rate decision.
Sectors however have seen rotation in most cases with no particular trend observed said Bajaj Broking. "Banking and Infra has appeared in most of the cases when the Nifty has generated a positive return in December."
Nifty also closed positive for the ninth consecutive year, while the broader market was 'outperformed' for the second consecutive year, with midcaps and smallcaps rising over 22 per cent each.
"The Indian market's long-term trajectory reflects a clear structural uptrend, consistently recording higher highs and higher lows in the yearly charts. Despite facing multiple challenges last year—such as election-related volatility, geopolitical tensions, a global economic slowdown, and foreign institutional investor (FII) outflows—the Nifty has demonstrated remarkable resilience, rising over 11 per cent in CY24 (till November's close). This strength underscores the market's robustness and highlights its potential for continued growth," said Bajaj Broking in a statement.
