“From a long-term perspective, we have still got an upside target of 16,800-17,000 on the Nifty,” said Laurence Balanco of CLSA, in an interview with CNBC-TV18.
“Over the next two-three months, there is corrective risk, essentially since June we have had the market consolidating in a very narrow range – 15,400-16,000 has been the trading range that we have been trapped in,” he added.
“Currently the leadership has been in technology and it has been a very strong sector year-to-date but going forward into 2022, we do think that the banking sector will participate,” he shared.
He sees banks breaking out of its trading range. “We think state banks can lead that breakout into 2022. As far as the level we are looking at for breakout is concerned, it is 37,500 on the Nifty bank index and basically the next target we would look at is 42,500,” he explained.
In terms of commodities, he further mentioned, “I think we are in a consolidation phase within a longer-term uptrend. So for copper, we have had this pullback and it is being consolidating. It is more rotationary within the commodity side. You have got oil now on a consolidation pattern.”
For the full interview, watch the accompanying video.