Ajit Mishra of Religare Broking gives his Nifty outlook

After a lacklustre week of trade, benchmark indices gained nearly 0.3% to ending the truncated week on a positive note. Buying momentum remained strong in the broader markets. Both BSE Midcap and Smallcap indices scaled fresh record highs in the last trading session. The midcaps ended the week with almost a percent uptick whereas teh smallcaps outperformed with over 2.3% jump. Ajit Mishra of Religare Broking spoke to Money9 to on next week’s outlook and strategy for investors.

“Markets are witnessing a pause but I believe it is a healthy pause after the phenomenal run. Nifty has run up 9% in the month of August so it is prudent that Nifty should consolidate a bit at the current levels”, he said.

Despite the recent run-up, he believes that there are certain pockets which have steam left, like the banking sector and select counters in the IT and energy pack.

“I do see the Nifty inching higher to 17,500 and then again seeing profit booking at those levels. So it is a buy on dips on the Nifty,” he added.

Going forward, he believes that in the next week, investors should focus on select stocks.

Stock Recommendations 

Kotak Mahindra Bank | Buy | Target: 1900 | Stop Loss: 1750

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Zee Entertainment | Sell | Target: 170 | Stop Loss: 190