NSE Nifty 50 is expected to break above 17,700 levels, and Bank Nifty could break through 38,700 in the near term before correcting to more modest levels, said Sanjiv Bhasin, Director, IIFL Securities. During today’s session, Nifty 50 hit a daily high of 17,566.10 and a low of 17,442.80. Sanjiv Bhasin, in an interview with Surbhi Jain of FinancialExpress.com, said that in the second half of August, markets may see a correction taking Nifty 50 to 16,300 levels and Bank Nifty to 36,300 levels by the end of this month. He also advised investors to enter the stock markets when Nifty approaches 16300 levels. Here are edited excerpts from the interview.
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What are the key themes to invest in the current market scenario?
The key themes to invest in in the current market scenarios are banking, reality, infrastructure, capex and IT sectors.
With the BSE Sensex, NSE Nifty gaining nearly 9% in the last month, is it time to buy or sell?
It’s time to take profit if you entered when we suggested early June when there was a capitulation, however, as we see more consolidation and dip towards 16300, it’s time to re-enter.
Where do you see NSE Nifty 50 and Nifty Bank in the short to medium term?
In the short term, Nifty could break above 17,700 with Bank Nifty extending up to 38,700, however, the second half of August could see a slip of the correction which could see 16,300 and 36,300 levels by now. the end of August.
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What are the key levels to track in Nifty 50 this week?
This week, the 17150-17700 levels of Nifty could be examined.
What are your main sectors and stocks to bet on?
The main sectors could be Banking, Infra, Reality, Capital Expenditure, and FMCG. While the major stocks are ICICI Bank, Aditya Birla Capital, IRB Infrastructure Developers, Godrej Properties, Godrej Consumer Products, Paisalo Digital, Union Bank of India.
When is a good time to buy IT and FMCG stocks?
SIP into Tech Mahindra, HCL Technology, Persistent Systems, Godrej Consumer Products, Marico and Nestle India for the next 16 weeks.
What are your underweight and overweight sectors?
Underweight sectors are pharmaceuticals, metals; and overweight are related to banks, reality, infrastructure and capital expenditure.
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