New lifetime high on cards for Nifty? Deven Choksey’s market outlook amid rally

As the markets display resilience amid the recent geopolitical tensions, investors remain curious if the market will hit a fresh lifetime high in the current leg of the rally? As markets continue to surge amid positive momentum, Deven Choksey, MD of DRChoksey FinServ, in an interaction with ETNow, shared his perspective on where the indices could be headed next and the sectors likely to drive the market in the coming sessions.

Choksey pointed out that the direction (of the market) remains positive despite the sharp rise in the previous session and suggested that a potential correction could present fresh buying opportunities for investors.

Choksey stated, “We probably would see the higher contribution into the index stocks, particularly from index stocks into the indexes,” indicating that heavyweights in the IT sector may start providing a higher amount of push compared to the recent reliance on BFSI and Reliance Industries.

He noted the possibility of Nifty moving up to 25,200 in the near term and consolidating between the 24,200 to 25,200 range before making further moves. However, he cautioned that the money market would take some time to pull off and adjust to this particular rise, indicating that some amount of correction could be imminent.

When asked about stock recommendations given the current earnings season, Choksey maintained a cautious stance on midcaps and smallcaps, preferring to stay ‘a little bit more protective’ with a focus on larger companies.

He identified IT, pharmaceuticals, and metals as sectors that could possibly give the momentum-based push to Nifty 50 stocks. Additionally, he expressed confidence in select BFSI stocks, highlighting their potential for a higher amount of growth driven by improving profit performance.Also read: India’s safe-haven edge at risk, says CLSA, as Nifty and Sensex recoil after best day in 4 years

Addressing the broader market outlook, Choksey remarked that input costs in the manufacturing segment have remained under control unlike last year, while the demand scenario in capital goods has shown signs of improvement. This, he noted, could be a positive for manufacturing companies in the near term.

In response to a query about potential buys, Choksey did not specify a particular stock but mentioned that IT and pharma stocks, particularly those benefiting from the recent trade deal with China, are currently available at corrective price and could present attractive buying opportunities.

“I would consider buying into the portfolio now and not going for later,” he added, indicating a selective and price-conscious approach in the current market environment.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)