Nifty To Touch 23,000 Mark Soon, Says Analyst
Bank Nifty has potential to reach the 50,000 mark, says LKP Securities' Kunal Shah; while Dharmesh Kant of Cholamandalam Securities says business updates in banking sector look encouraging.
Mid and small-cap stocks have shown a strong upward movement, and the technical charts also reflect the same, according to Kunal Shah. “I expect Nifty to touch the mark of 22,800\900 and eventually 23,000 on the higher end,” said Shah, senior technical and derivative analyst at LKP Securities Ltd.
Bank Nifty looks very positive along with the potential to reach the 50,000 mark, he said.
Mid and small caps may witness consolidation where certain sectors may outperform, rather than the entire pack of mid and small cap stocks, he said. “At higher levels, we will keep consolidating at mid cap and small caps. But the indices will continue to make newer highs.”
Kunal recommends Larsen & Toubro Ltd., at a target price of Rs 4,100 per share and stop loss at Rs 3,700 apiece.
The NSE Nifty 50 ended 24.55 points, or 0.11%, lower at 22,641.75, and the S&P BSE Sensex closed 58.80 points, or 0.079%, down at 74,683.70. Nifty rose to a fresh high at 22,768.40, while Sensex gained to a record high of 75,124.28 during the day.
Bullish On IndusInd Bank
Business updates in the banking sector look encouraging, according to Dharmesh Kant, head of equity research at Cholamandalam Securities Ltd. “Across the board, we have seen advance growth more than deposits growth.”
Kant is affirmative on IndusInd Bank Ltd., as its third-quarter performance along with its business updates stood out. He emphasised that the bank can be rerated if the forthcoming results remain strong.
Metal Sector
The metal sector witnessed a strong breakout a few days back, after which there has been a "continuous uptick”, said Shah. He expects the sector to reach the 9,300\500 mark—a 5-6% rise from current levels.
“Since the metal index goes up, we can see the stock prices going up by 10% in the short-term,” he said. This makes Shah bullish on the metal segment.
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