Expect Nifty at 24K in next 3-4 months; Midcap 100 to rally towards 58,000; Smallcap target 18K: Manav Chopra

economictimes.indiatimes.com:

Manav Chopra, Director- Technical Analyst, Nuvama Institutional Equities, says in general, Nuvama likes metals, defence, power and mid-tier PSU banks. That is how they have selected the stocks within this space. Further, he says usually, markets do not remain oversold for a longer period of time in an ongoing bull market. That is what has been witnessed recently in the midcaps and smallcaps. After the kind of reversals that was witnessed in the broader spaces, a lot of frontline names have not only seen a good rebound rally, but a few sectors within the midcaps and the smallcaps have also extended their gains and reached all-time highs.

The first question is about the broader markets. In March, suddenly there was fear on account of the commentary that we had got from the regulators – SEBI and AMFI – and an entire narrative was being built up about the froth in the broader markets. It has completely got undone now because from March lows, the smallcap index is already up 10-12% and even the midcap index is up. What do you think is the way forward for them?
Manav Chopra: One thing to note is that the decline that we witnessed from February and March was more or less corrective in nature and this is the beauty of the bull market where the corrections are very sharp and the markets always need an excuse to decline. This is definitely in hindsight. When we are looking at the broader perspective, the markets have actually not violated any of the medium-term or long-term supports to call it a trend reversal.

Unlock