Laurence Balanco of CLSA shared his views and outlook on Nifty, Nifty Bank, Brent crude, dollar as well as on MSCI emerging market index.
On Nifty, Balanco said, “What we should expect in the coming session it will further ranging below 12,000 but I think any pullback is likely to be limited to around 11,250 area -- an upside targets from 12,900 up to 13,700. So I think pulling back towards 11,250-11,300 you can add to long positions again.”
In terms of midcap index, he said, “Once we get the initial phases of the largecap moves, we should see that broaden down to midcaps and smallcaps and ultimately midcaps and smallcaps should be the leader on the move with the Nifty towards 13,700. I would think that trend will develop as you start to see the midcap and smallcap outperform the largecap Nifty.”
On brent crude, Balanco added, “We are looking at the upside capped around $80 per barrel.”
Speaking about MSCI emerging market index, Balanco said, “Unfortunately, if you look at the MSCI emerging market or the ETFs related to the index, about 80 percent of this index is China related. So that has been the big drag recently. The weakness has put the MSCI emerging market back in the trading range and likely to test the 920-930 area, it is generally weaker than the outlook for Nifty.”