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“I think the market is giving the breakouts. It is holding well to all the support zones. Even the global sentiment is starting to recover,” said Chandan Taparia, head of technical and derivatives research, Motilal Oswal. “Good support from global indices and stability of the rupee along with all other indicators hint that the momentum may continue.”
Taparia told BQ Prime that the base of the market is drifting higher which could potentially carry the Nifty 50 to Rs 18,500-18,600 levels by the Diwali season, which is in October this year. There would be a small decline of about 200 to 400 basis points in between, which may be seen as a buying opportunity, he said.
Indian markets are witnessing a buying interest across the board, Taparia said, adding that the immediate support in a rising market is “not broken”.
The upside for Nifty from here on will be a function of stability in global and local macros, and continued earnings delivery versus our expectations, the report said.
Reliance Industries, which bottomed out a couple of weeks back at Rs 2,370, is now developing a higher base. “Reliance will also support in this rally to take the Nifty hands-on,” Taparia said. The stock of the Indian conglomerate is currently seeing limited momentum owing to call writing activity, he said.
Motilal Oswal maintains ‘overweight’ stance on BFSI, IT, consumer, telecom and auto with ‘underweight/netural’ stance on energy, metals and healthcare sectors.
Watch the full conversation here:
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Image and article originally from www.bqprime.com. Read the original article here.