Nifty50 has grown as one of the strongest markets in the world, said JC Parets of All Star Charts, in an interview with CNBC-TV18.
“When you compare Indian stocks with other emerging markets (EMs), by far India is one of the strongest EMs. While China is getting hit, Russia and Brazil with their natural resource exposure and Indian equities just chugging along, I think Nifty50 at 20,000 is a real possibility in the next coming quarters,” Parets said.
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He believes Tata Consultancy Services (TCS) has been a winner.
On RIL, he said, “It is Reliance Industries Ltd (RIL) that hasn’t done anything in over a year. What ends up happening is after such a massive move in Reliance, it needs to take a break, it needs to digest those gains, and it did so for about 10 months or so and now it is ready to move on. So, if Reliance is above Rs 2,200, I think there is another 50 percent upside available.”
According to him, fast moving consumer goods (FMCG) companies have been leaders.
“Hindustan Unilever Ltd (HUL) – for me, Rs 2,300 is the risk level. If HUL is above Rs 2,300, you have to be long and the next target is Rs 3,600,” he said.
Larsen and Toubro (L&T) didn’t do much for five-six years and then after Covid low, came back with a vengeance. “Rs 2,200 is where the stock is going. So, from a risk perspective, Rs 1,625 is the level – if we are above that level, we could be long. That entire space looks strong not just in India but globally,” he mentioned.
“If we are above Rs 5,500 in Nifty metals index, you have to own the space, you have to be long. I think we will reap above Rs 8,000 for the Nifty metals index,” Parets said.
For the full interview, watch the accompanying video.
Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.