Expect Nifty to rebound, likely to hit 16,000: MOFSL’s Chandan Taparia

Markets found themselves in a bear grip on Monday as they got pushed lower by a risk-averse sentiment across global equity markets. The Sensex fell nearly 600 points to 52,553 in its biggest selloff in nearly 3 months while Nifty settled 1% lower at 15,752.

All sectoral indices, barring Nifty Pharma and realty, ended in the red. Nifty Private Bank, Bank and Financial Services fell up to 2%.

“Markets opened gap-down, they recovered from opening lows, however, the sentiments were seen taking a hit due to weak global cues and a drag in banking and auto stocks,” Chandan Taparia of Motilal Oswal Financial Services told Money9.

Bank Nifty and HDFC Bank in that was seen as the key reason for the sharp fall in the index.

“See Nifty bank slipping to 34,500 levels in the near term,” he said. However, he does not see a deeper correction immediately.

“These current dips can be used by investors to add quality names. We see 15,400-15,600 as major supports for the Nifty and a pullback can again take Nifty above 15,900 towards all-time highs of 16,000”

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