Buy On Dips As Nifty May Scale Past The 22,000 Mark, Say Analysts
'We are moving towards the 22,000 level and might continue beyond as the overall structure, broader markets are bullish..," Axis Securities' R Palviya said.
Once short-term consolidation phases out, the benchmark Nifty may breach the 22,000 mark in 10–15 trading sessions, according to market analysts.
But this might take some time due to the consolidation activity going on in the index, according to Rajesh Palviya, senior vice president, technical and derivatives research, Axis Securities Ltd.
"We are moving towards the 22,000 level and might continue beyond as the overall structure, broader markets are bullish, and sectoral rotation is happening in the market," Palviya said.
"We can expect some consolidation for a couple of days, and 'once we take out 21,750 in Nifty, then we can see another round of short coverings, and that can add further to the upside towards the 22,000 level," he said.
The Gujarat investor summit, the upcoming budget, and the hope of rate cuts are the big events that are keeping the markets excited, according to Sunny Agarwal, head of fundamental equity research at SBICAP Securities Ltd.
Investors must focus on the stock-specific strategy rather than key benchmark indices, Agarwal said.
Pockets of opportunities exist in sectors where there is an expectation of healthy order flows, like power, defence, and railways, according to Agarwal. "Despite the negative global cues, the Indian market is holding up very well, and we continue to remain optimistic with our stock-specific money-making opportunity."
On Thursday, gains in the shares of financial services companies pulled the indices to end higher after two consecutive sessions of fall. The NSE Nifty 50 ended 141 points, or 0.66%, higher at 21,658.60, while the S&P BSE Sensex gained 491 points, or 0.69%, to close at 71,847.57.
Bank Nifty is looking attractive, and if it crosses the 48,200 level, then it can furthermore support Nifty to inch higher, according to Palviya. "So, both indices are looking bullish, and buy-on-dip should be the strategy."
For Nifty, the key level to watch out for is 21,500, he said.
The real estate stocks can see more upside, and one can buy Godrej Properties Ltd. as it can scale up to Rs 2,280–2,300 from the current level of Rs 2,212 apiece. Banking as well as non-banking finance companies are looking promising and attractive, Palviya said.
While the mid-cap information technology stocks are showing good operational growth, they are currently trading at a high valuation, SBICAP Securities' Agarwal said.
