CLSA’s technical call on Nifty: Target 10,300 in sight once new high is made

By: | Published: March 6, 2017 12:28 PM

Brokerage firm CLSA said on Monday that it expects NSE Nifty to hit 10,300 points once the index breaks in with a new all-time high. “We ultimately believe that this 9,000 area, we will break through that and make new all time highs,” CLSA’s Global Technical Analyst Laurence Balanco said in an interview to CNBC TV18.

“The December 2016 lows will be the critical support levels for this uptrend. We think further gains will be made post this short term pause with 10,300 being our first upside objective,” CLSA’s Laurence Balanco said to CNBC TV18. (Image: Reuters)

Brokerage firm CLSA said on Monday that it expects NSE Nifty to hit 10,300 points once the index breaks in with a new all-time high. “We ultimately believe that this 9,000 area, we will break through that and make new all time highs,” CLSA’s Global Technical Analyst Laurence Balanco said in an interview to CNBC TV18.

Balanco said the brokerage has a first target of 10,300 points on Nifty with the support at the levels of its December lows. “The December 2016 lows will be the critical support levels for this uptrend. We think further gains will be made post this short term pause with 10,300 being our first upside objective,” Balanco said to CNBC TV18.

He said that the Nifty is expected to sustain its uptrend, overcoming the temporary hesitation. “The momentum indicators that we are looking at on a daily basis are overbought. I think it is only a short term hesitation rather than a major reversal,” Balanco said, adding, “So the broader uptrend that we have seen unfold over the December lows should remain intact for Nifty.”

Of late, Indian benchmark indices have seen sustained gains led by blue-chip stocks on the back of strong corporate earnings growth, better than expected GDP data and attractive valuations. Several fundamental analysts, too, are bullish on the Indian benchmark indices NSE Nifty and BSE Sensex.

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Earlier last week, brokerage firm Morgan Stanley raised its base case target on Sensex to 33,000 points by the end of the current year 2017, up 10% from its previous target of 30,000 points. “We have been arguing for an M&A cycle over the past few months and lift our Sensex target by 10% to reflect the same,” Morgan Stanley analysts Ridham Desai and Sheela Rath said in a note.

Edelweiss Broking too recently said that it sees Nifty rising to 9,500-9,700 points by the end of the current year 2017, as the benchmark Indian index regains its premium over other emerging markets, and falling bond yields propel equity markets further. India’s premium over emerging markets is at the lower end. Edelweiss said in its India Strategy research note. It is witnessing a revival and signals an upside from here, it added.

Another brokerage Prabhudas Lilladher also seems unfazed by the valuation, with its Head of Institutional Equities R Sreesankar expecting a rally of about 400 points on the Sensex from here by the end of the year.

 

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