Brokerage firm CLSA on Tuesday said the bank index is likely to pull back Nifty towards 11,200-11,300 points in the near -term. “The bank index from a longer-term perspective is the most constructive breakout that we have seen through 2018 and 2019 but on the short-term basis, it is likely to be the one that pulls the Nifty back towards 11,200 area,” said Laurence Balanco of CLSA.
“On a relative basis, on the short-term volatility, we will get some relative outperformance. If we go to the banks’ longer-term charts, what we are seeing is the breakout above 28,000 that gives you some minimum upside target of 35,000,” Balanco said.
On about crude prices, Balanco said, “We are likely to see a pullback to the initial breakout point, which was around $70 per barrel and then one more push to the upside to reach $79-80 per barrel but that is what we think is the peak of this advance and then we would look for the Brent to roll back towards $65 per barrel.”