Outlook Of Nifty/bank nifty today

Nifty Outlook:

There is a lot of strength in the market and that is getting reflected in the way stock prices have moved across sectors. It is advisable to buy winning stocks on declines whenever there is a dip because if fundamentals do not catch up then we could see a minor correction in markets. Both domestic, as well as global liquidity, has been strong which kept the rally going for Indian markets despite selloff by foreign investors in the December quarter. Retail investors poured in more than Rs 70,000 crore in equity-oriented mutual fund schemes in 2016- 17, making it the third successive year of net inflows.

Bank Nifty Outlook:

One of the major factors, which are driving optimism, is the recovery in earnings growth along with the implementation of government reforms in Asia’s third largest economy which is growing at 7 percent rate, faster than most developed and emerging market (EMs) economies. We are expecting 12-15 percent CAGR in Sensex EPS, which could take the overall EPS to 1,700 by FY18, 1,950 by FY19 and 2,250 by FY20. At the given forecasted numbers, Sensex could touch the levels of 34000 in FY18, 39000 in FY19 and 45,000 in FY20 at the trailing P/E of 20x, which is the moderate valuation for a growing economy like India

Nifty Trends

R1 9380
R2 9475
S1 9270
S2 9180

Technical Outlook:

Top Gainers

ONGC 186.05
SBIN 289.40
MARUTI 6,511.00

Top Losers

ITC 277.80
HDFC 1,537.00
TECHM 417.25