Expect Nifty to reclaim 8000, banks likely to outperform: JM Fin

Gautam Shah of JM Financial says technically, the index has been flirting with the major support zone of 7,780-7,800.

The manner in which the bulls have protected the important support of 7,780 on a closing basis is quite commendable, he feels.

He says he remains of the view that unless 7,780 and 7,700 break on a closing basis the trend shall remain up. He continues to expect the index to re-test 8,000, take it out and move onwards to 8,150 levels.

According to Shah, capital goods, auto and banking sectors are likely to outperform.