NSE Nifty 50 has greater than doubled from the lows of March 2020, hitting a document excessive of 15,432 earlier this week. The rally has been fueled by Union Budget optimism, overseas fund inflows, and buoyant world markets. Naveen Kulkarni, Chief Investment Officer, Axis Securities, tells Surbhi Jain of Financial Express Online that NSE Nifty 50 may attain 16,000 by as early as the tip of March 2021. Naveen Kulkarni additionally says that Indian share market is focussing on worth and demand revival. He shares three trading ideas for next 4 weeks which may supply good returns to the traders. Here are edited excerpts:
1. Is it the time to purchase, guide income or sit on money within the present markets?
The markets have rewarded danger taking within the final one yr, and money positions have resulted in extreme underperformance. The market is now on sector rotation and focussing on worth and demand revival. So, enjoying the sector rotation theme will ship first rate returns.
2. Where do you see Sensex, Nifty by the tip of this fiscal? What are the important thing assist and resistance ranges?
Our NIFTY goal by the tip of the monetary yr is 16000. Technically, we see assist at 14000 stage and resistance at 16000 over an yr perspective.
3. In the approaching weeks, ought to traders enhance allocation to defensive sectors?
Not actually. Classic defensives like FMCG, Pharma might nonetheless underperform whereas IT might see allocation. So, churning into defensive sectors may not be an amazing theme.
4. Do you suppose the Nifty 50 index is getting into a consolidation section? How ought to merchants place themselves on this market?
The market ought to consolidate and arrange a stable section for the next transfer. During this section, sector rotation will play out.
5. What are your 3 trading ideas and their rationale for next 4 week?
Our trading ideas are:
a) Bank of Baroda: PSU financial institution rally will proceed and BOB is without doubt one of the higher positioned PSU banks
b) JK Lakshmi Cement: Cement firms will do properly and JK Lakshmi Cement is undervalued and will see traction
c) Eicher Motors: Discretionary shares are prone to outperform and Eicher has corrected publish outcomes. Good time to build up.
6. If an investor desires to deploy Rs 1-3 lakh publish Union Budget 2021, what’s a doable portfolio choice?