Perspective on Markets

By Shrikant S. Chouhan, Senior Vice President - Equity Research:

Today the nifty performed much better than world markets and beat the expectations of optimistic bulls. Fall in crude prices and likely chances of rise in domestic currency has developed the momentum and that has triggered massive short covering towards the end. By crossing 7800 the nifty has set up the target of 8000 plus in the near term. However, buying is advisable on dips around 7800. Today almost all banks, capital goods and infra stocks did extremely well. Auto stocks also did well especially Tata motors and Maruti. We are of the view that Technology stocks are going to underperform in the near term but buying in mid cap IT stocks should do well.