Dec rally coming, mkt to run 10% more if 6250 snaps: JM Fin

Notwithstanding the volatility in the market, technical analyst Gautam Shah of JM Financials says this retracement is actually healthy for the market. The Nifty will continue to stay in the consolidation phase for next couple of weeks and trade in the range of 5950-6250. Shah believes 5950 is a firm base and does not see market breaking below that.

He is exceptionally positive of market breaking the 6250 level in a December rally and advises investors to take a positional call for that month. He goes on to add that breaking of 6250 would translate into a massive 10-15 percent rally in 2014.

In the first leg  IT FMCG and Pharma had led the rally but the next leg will be led by auto, metals and Capital Goods stocks. Shah doesn't rule out participation from the banking sector as well in due course. He continues to be positive on private banking space namely Kotak Mahindra Bank, HDFC Bank and ICICI Bank for the mid-term and strongly believes if one buys these towards the low end of the trading range, the risk-reward would favour the investor.

He is extremely bullish on the auto index with M&M, Tata Motors and Bajaj Auto being his favourite picks. "You can make serious money from the auto sector so the suggestions are not for traders," he said.