Recent breakout confirms bullish trend, see Nifty at 10,350; buy HDFC, Axis: CLSA

Laurence Balanco of CLSA says this week's regional price action is dominated by the bullish breakouts in India's Nifty and Korea's Kospi 200. Technically, the breakout in the Nifty is more compelling with momentum indicators continuing to confirm the market highs.

Unlike the Kospi 200's breakout, the Nifty's attempt to breakout above 8,994-9,191 is being confirmed by its daily momentum indicator, he says.

Momentum and breadth confirmation of a break above the 8,994-9,191 resistance zone would trigger the bullish implication of the 2015-to-date trading range, he adds.

Balanco feels such a move would open the door for a move up to the following target levels seen between 10,350 and 12,000.

Note the CNX Banks index is leading the broader market breakout and we continue to recommend buying HDFC and Axis Bank, he says.