With the equity indices trading at near all-time high levels, Laurence Balanco, Global Technical Analyst at CLSA says that the Nifty could top the 12,000 level by the first half of 2018. In an interview to CNBC TV18, Laurence Balanco said, that he has a target of 12,000 on the index for H1CY18 and target of 31,000 on the Bank Nifty. “The stop loss for Nifty is at 10,050 and for Bank Nifty it is at 24,700,” Laurence Balanco told the channel.
Further, the expert pointed out that he sees a re-rating in the emerging markets, and the positive trade is to move out of international assets into emerging market assets. Laurence Balanco said that he expect a 3-5 percent pullback in the near-term but not a big correction for the US market, adding that one should treat this correction as a buying opportunity. However, he added that investors should avoid chasing momentum in the short-term.
Interestingly, global brokerage Goldman Sachs had raised its Nifty 2018 target to 11,600 vs 10,900 earlier, while Nomura expects the broader 50-share index to hit 11,880 by December-18.
CLSA is bullish on real-estate and corporate banks in 2018. “The real estate sector looks well poised in 2018 as well. A lot of stocks have gone up materially last year but 2018 to my mind is going to be another very good year for the sector. The primary reason is one is obviously the RERA which is driving industry consolidation which helps the large listed organised sector players and we are also expecting the housing sector to start reviving,” Mahesh Nandurkar of CLSA told ET Now in a recent interview.
But what kind of stocks should investors look to buy in the year? “ On the first one, real estate developers are clearly one of the biggest beneficiaries but the entire chain starting from the housing finance companies, the building material segment including cement and non-cement, building materials as well like pipes, some of the low ticket consumer durables which are used in households like the lighting, the fans etc. — those companies should also benefit along with the real estate developers. This entire sort of chain related to the housing related activities should do pretty well in 2018,” the expert noted.