Nifty uptrend intact, banks likely to lead rally; buy HDFC: CLSA

Laurence Balanco of CLSA says most global markets are at a new 52-week highs and any short-term pullback in these markets are likely to be followed by further gains.

The Nifty has traced out an impressive long-term uptrend with the index set to extend its trend as price action tests overhead resistance provided by the March/September 2015 all-time highs at the 8,994-9,191 area, he adds.

A break above this resistance zone would extend the bullish uptrend channel which has been unfolding off the December 2011 lows and would open the door for a move up to the following target levels seen between 10,350 and 12,000, Balanco feels.

At the sector level, the NSE Nifty Bank index looks set to lead the Nifty's breakout, he says. He advises buying HDFC and Axis Bank.