See Nifty now moving towards its next target of 18,000 now: Abhishek Basumallick

Domestic equity market benchmarks BSE Sensex and Nifty 50 were trading at new record levels on Tuesday. BSE Sensex hit a fresh record high of 53,478.57, while the Nifty 50 index touched a new all-time high of 16,000.

Among sectors, the metal index is down nearly a percent, while FMCG and pharma indices rose 1% each. BSE midcap and smallcap indices are trading flat after hitting fresh record highs. Abhishek Basumallick spoke to Money9 on what’s next for the Nifty going forward.

“While we had been waiting for these levels, these are milestones on the way, however, long-term investors should stick with quality and notice whether their stocks are also progressing. In many segments valuations are high, there has been a sharp run-up. One should definitely have an eye on the fundamentally strong companies. I believe Indian markets are on a strong wicket despite any corrections that we may see”, he said.

He believes that one may not know when a correction may take place and it is best to be prepared for a 20-25% cut as a long-term investor and stay put with quality.

“I believe Nifty will move to a target of 18,000 now. Investors should now focus on earnings growth visibility. FMCG, Pharma, IT, Chemicals will continue to do well. Investors should not chase price momentum or dilute the quality of portfolio now”, he added.