Sensex crosses 55,000: What’s next for markets?

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Indian markets continued to rise for the second straight week, closing at historic levels on “Friday the 13th”. Sensex and Nifty closed at record highs on August 13 at 55,437 and 16,529, respectively. Chandan Taparia of Motilal Oswal Financial Services spoke to Money9 to understand the reasons behind the rally and what’s the outlook on markets going forward.

On a weekly basis, BSE Sensex was up 2.13%, while the Nifty50 ended 1.79% higher. In the broader market, the pain continued as the midcap and smallcap indices fell 1%t and 1.7%, respectively.

He believes several reasons like strong inflow of funds from both domestic and foreign investors amid favourable global cues and supportive macroeconomic helped benchmark claim new highs.

“It is a great moment for Indian markets as we celebrate the 75th Independence Day, the Sensex has also touched 55,000, the sentiment is very bullish and there is ample liquidity in the system,” he said

He also said Nifty is on course to clock in 16,750 in the coming week.

Stock recommendations for next week:

L&T | Buy | Target: 1,850 | Stop Loss: 1,625

HDFC | Buy | Target: 2,850 | Stop Loss: 2,625