Nifty likely to hit 16,000 in coming days: Jay Purohit

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Domestic equity markets started the July series on the positive note tracking firm global cues. The S&P BSE Sensex was above 52,700 while the Nifty 50 index crossed 15,800 in early trade. However volatility led markets to turn flat with Sensex trading with a negative news in an hour of trade.

RIL dropped to its day’s low after equity worth Rs 700 crore changed hands via block deals in trade today. However, auto, metals and banking stocks continued to rise, capping the losses.

Jay Purohit, Motilal Oswal Financial Services spoke to Money9 and said, “Structurally markets are still in a bull-phase. The dips are being bought into. Markets have continuously remained in favour of advances. We can see the momentum continuing to 16,000 in the coming days”

On the just concluded June series, Purohit said that it was yet another historical expiry for the Indian markets as benchmark indices crossed their February month’s high and registered new all-time highs. Market started the June series with some long positions and the bulls continued to control. Nifty registered a record high of 15900 mark. However, it moved in consolidative phase in two weeks.

“Index concluded the June series a tad below 15800 zone, with gains of 2.95% over its May expiry close. As a result, open interest has decreased by 7.17% on expiry-to-expiry basis. Rollover in Nifty stood at 84.61%, which is higher than its quarterly average of 75.08%”, he added

FIIs turned net buyer in cash market segment in June series and cumulatively bought equities worth more than Rs 7168 crores in June series. On the other hand, DIIs were also marginal buyers (2058 crores) in June series.

In the July series, jay expects the index to consolidate in a range while stock specific action is likely to continue.

“Traders should focus more on stock specific action in July series”, said Purohit.

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