Mkts not bottomed yet, but extent of rally unknown: Experts
It was a day of positive consolidation at the markets. Though markets witnessed a small bout of profit booking mid-day, the indices managed to hold on. The entire metals pack and capital goods stocks went home with good gains. Volumes were not too bad as well. The Sensex closed up 186.04 points, or 1.8%, at 10534.87, while the Nifty was up 45.55 points, or 1.42%, at 3256.6.
Where is the bull rally likely to end?
Sandeep Bhatia of Kotak Institutional Equities feels the extent of the bull run in markets has come as a surprise.
“The current market is exactly the opposite of the one seen in October-November 2008. At that time, there was complete risk aversion and valuations completely fell off a cliff. Now, the risk aversion is coming off and risk appetite is increasing, which is why the market has gone up sharply in the last three weeks.”
According to him, markets would peak at around 3,450 and 11,500-12,000 on the Nifty and Sensex respectively. He believes markets should stop rallying in a week or so and take a breather for some time. “The fundamentals of this market need further clarification and the outcome of elections would be a key determinant for the same.” He sees a 10% upside in the near-term.