Despite high volatility, stock markets have been scaling new highs with each passing session and going forward experts are certain that the rally would continue for the coming days. Expecting the benchmark Sensex to start the week with a gap up opening, experts advise investors to take advantage of every fall and buy stocks with a medium term outlook.
Jagdish Thakkar from Fortune Fiscal is quite optimistic for the markets and expects the momentum to push frontline indices to new record highs. “My overall view on the market is quite bullish and expects Sensex to start the week with a gap up opening of at least 100 points,” Thakkar said.
He further added that with Narendra Modi officially taking over as the new Prime Minister, all focus would be on who he assigns the critical ministries to. Markets would continue to rise till everything on the political front is completely clear. While commenting on a possible correction, Thakkar said, “There would be a small correction due to profit booking but we are not it to be deep and expect markets to again bounce back.”
Urging investors not to take selling positions in the current market, Thakkar advised, “Traders and investors should avoid going short in the present scenario as the markets are expected to surge more. Rather they should buy on every fall and hold the stocks with a medium term view. Sectors which would attract fresh buying includes oil & gas, banking and automobiles.”
Maintaining a positive view on equity markets, RK Global’s Rakesh Bansal stressed that soon indices would touch new life time highs again. Bansal Said, “We are expecting to see new highs in the coming days and the rally would be in all sectors. Frontline heavyweight stocks are expected to lead the rally with fresh buying coming into midcap stocks as well.”
When asked which stocks investors should focus on, Bansal replied, “Investors should look for opportunities in all sectors. Some of the stocks which expect would be the best performers are Reliance Industries, Bank of Baroda, Bayer Cropscience, GMR Infrastructure. Also investors should focus on auto ancillary stocks.”
Equity Rush’s Kunal Saraogi is also certain that the rally would continue and recommends traders to buy high momentum stocks with a medium term view. He said, “The election outcome has completely turned the market sentiments upside down. We expect the rally to continue with small corrections in between.”
As a strategy for investors and traders, Saraogi said, “Traders should use every small dip in the markets to buy again. Investors on the other hand, should invest in a staggered way on every decline and hold stocks until there are signs of market losing momentum.”
like others, Ak Prabhakar, a senior market analyst is also quite bullish on the markets and is certain that the rally in equities would carry on for the coming days. “I am certain that the markets would continue to rise from here. I expect Sensex to surge by another 1,000 points and Nifty by 300 points from here,” Prabhakar said.
Urging traders and investors to keep a diversified portfolio in order to make the most from this rally, Prabhakar added, “More focus should be kept on public sector banks as they have already corrected heavily and now expected to rise sharply. Also information technology and pharmaceutical stocks have been falling under the pressure of profit booking and now are at attractive levels and would again see fresh buying.”