NSE Nifty 50 has more than doubled from the lows of March 2020, hitting a record higher of 15,432 earlier this week. The rally has been fueled by Union Budget optimism, foreign fund inflows, and buoyant international markets. Naveen Kulkarni, Chief Investment Officer, Axis Securities, tells Surbhi Jain of TheSpuzz Online that NSE Nifty 50 may well attain 16,000 by as early as the finish of March 2021. Naveen Kulkarni also says that Indian share market place is focussing on worth and demand revival. He shares 3 trading suggestions for next 4 weeks which may well present superior returns to the investors. Here are edited excerpts:
1. Is it the time to get, book earnings or sit on money in the existing markets?
The markets have rewarded danger taking in the final one year, and money positions have resulted in serious underperformance. The market place is now on sector rotation and focussing on worth and demand revival. So, playing the sector rotation theme will provide decent returns.
2. Where do you see Sensex, Nifty by the finish of this fiscal? What are the crucial assistance and resistance levels?
Our NIFTY target by the finish of the economic year is 16000. Technically, we see assistance at 14000 level and resistance at 16000 more than an year viewpoint.
3. In the coming weeks, ought to investors raise allocation to defensive sectors?
Not truly. Classic defensives like FMCG, Pharma could nonetheless underperform when IT could see allocation. So, churning into defensive sectors may well not be a terrific theme.
4. Do you feel the Nifty 50 index is getting into a consolidation phase? How ought to traders position themselves in this market place?
The market place ought to consolidate and set up a strong phase for the next move. During this phase, sector rotation will play out.
5. What are your 3 trading suggestions and their rationale for next 4 week?
Our trading suggestions are:
a) Bank of Baroda: PSU bank rally will continue and BOB is one of the far better placed PSU banks
b) JK Lakshmi Cement: Cement corporations will do effectively and JK Lakshmi Cement is undervalued and could see traction
c) Eicher Motors: Discretionary stocks are most likely to outperform and Eicher has corrected post outcomes. Good time to accumulate.
6. If an investor desires to deploy Rs 1-3 lakh post Union Budget 2021, what is a attainable portfolio solution?
Allocating to banks which includes State Bank of India (SBI) will provide superior returns.