Nifty Bank, IT Helping Positive Sentiment In Current Rally: Analysts
The markets are in for a sustained rally for the next few months on expectations of political stability, says an analyst.
Strong performance in the Nifty Bank and IT is helping retain positive sentiment and the broader index will likely see steady upward traction, according to analysts.
"Nifty has shown a terrific rise over the last few sessions and now we are seeing some breather," Raja Venkatraman, co-founder of NeoTrader, told NDTV Profit. "Historically, December has been a positive month."
Venkatraman highlighted that the standout feature this month had been the Nifty Bank. "We are seeing strong performance in Bank Nifty and also Nifty IT. This is helping to retain positive sentiment."
On the lower side, 21,000 or 20,900 is going to be an important support the Nifty has to break, he said. "Otherwise, we are seeing steady upward traction."
On the Nifty Bank, Venkatraman said the upward doors opened for 48,500 and it is 46,000 on the lower side. "The range may appear to be a large one. The banks have started firing."
Venkatraman said his buyside picks would be Polycab India Ltd. and Coforge Ltd. He also keeps Exide Industries Ltd. on the radar for Tuesday, with a target of Rs 305 apiece.
The benchmark indices closed higher for the second consecutive session as the S&P BSE Sensex closed 0.15% higher at 69,928.53, while the NSE Nifty 50 was 0.13% up at 20,997.10. Intra-day, the Nifty reclaimed the 21,000 level and the Sensex crossed the 70,000 mark for the first time.
Venkatraman said his buyside picks would be Polycab India Ltd. and Coforge Ltd. He also keeps Exide Industries Ltd. on the radar for Tuesday, with a target of Rs 305 apiece.
The markets are in for a sustained rally for the next few months on expectations of political stability and continuity of government, according to Amnish Aggarwal, head of research at Prabhudas Lilladher Pvt.
Stocks of pharma companies, which are trading at reasonable valuations and have strong visibility and flexibility to shift production from facilities under the FDA scanner, can be bought during corrections, he said.
Highlighting the muted growth in the FMCG sector in rural areas, Aggarwal said he is not positive on consumer staples and prefers consumer discretionary.
The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
