CLSA maintains its Nifty target of 12,000 and Nifty Bank target of 31,000 for 2018.
The Nifty might be showing signs of fatigue, thanks to weak global cues. The index has fallen over 600 points from its all-time high of 11,171 but the technical set-up suggests that Nifty should be able to find support near 10,300-10,400 levels.
But Laurence Balanco, Global Technical Analyst at brokerage firm CLSA, does not see the index retesting its March lows which should come as a respite to trades. Despite last month’s correction, he told CNBC-TV18 that the brokerage is maintaining its Nifty target of 12,000 and Nifty Bank target of 31,000 for 2018.
In the IT pack, CLSA is betting on Infosys.
Rising crude oil prices, which have been an overhang for an oil importing nation like India, is likely to hover in the range of $65-80 per barrel, he stated. “The good news is that in the near-term it should pull back.”On global markets, Balanco said select markets are touching fresh new highs which should keep the momentum going for India. “India has been a relative underperformer in the past, when compared to other emerging markets, thanks to a weak rupee versus the dollar. China remains the lead performer in the emerging market space.”