Gautam Shah of JM Financial believes it is still a good time to buy. In an interview with CNBC-TV18, Shah said that the next Nifty target is 11,750, which could be achieved in a few weeks while 12,222 could be approached in the next few months.
He believes that the market has passed the acid test. Nifty has overcome many domestic and global hurdles in the last few months, he said.
When asked which sectors would lead, he said banks have seen a phenomenal run in last 30-45 days and will not stop. “For the Bank Nifty, our near-term target is 30,500 and over medium-term, looking at 32,600."
With regards to midcaps he said the space looks very interesting. “Now with the midcap index having formed a bottom around 16,000 and the doors of the major resistance around 18,000, if that were to get taken out, we could see next leg of the rally led by the midcaps, and the index goes as high as 20,000-20,500,” he said.
On auto, he said the house would prefer not to buy into sectors where it would be challenging on the long side and that there are far better names to buy than the auto stocks. However, one can look at the auto ancillary stocks with a 2-3 year time frame, he added.
From banking, the house would prefer to concentrate on names that have underperformed such as Axis Bank, ICICI Bank than winners like IndusInd Bank, said Shah.