Even as the market is taking a breather after the recent rally, CLSA says that as per technicals the BSE benchmark Sensex is all set for 39,707 level, an upside of over 75 per cent from its present level of 22,330.80 over 12-24 months.
From a technical perspective, the recent breakout in Indian markets to new highs is a signal that the long-term uptrend off 2003 lows is resuming. This implies an upside target for the BSE Sensex of 39,707 (up 75 per cent) over 12-24 months," the report said.
In the short term, the brokerage sees a correction in the markets to 21,483-22,023 which should offer an attractive buying opportunity.
According to the report, both fundamentals and technicals agree on a positive market outlook.
"The technical view is aligned with our positive fundamental "trend-reversal" view of India since growth recovery and below-average valuations support market upside. Fundamentally, however, we are looking at more gradual market gains, ie, around a 15 per cent return Cagr over a two-year period," the report said.
It expects cyclicals to benefit the most in next one-two years on the basis of both fundamental and technical factors and see them outperforming the exporters.
The common buy ideas, according to the report, emerging from a technical and fundamental analysis are GAIL, HDFC Bank, L&T, Maruti Suzuki, Reliance Industries and SBI.
The Indian markets have been on a tear since the rally began in February 2014. On the back of strong dollar inflows from the foreign institutional investors, the Sensex hit an all-time high of 22,792.49 on April 10.
With the macro economic data looking positive, the economic activity is expected to gather steam by 2015. In the near term, high inflation are expected to keep the interest rates high which is hurting the growth.
Last month, Raamdeo Agrawal, joint managing director, Motilal Oswal Financial Services Ltd, had told ET Now that the Nifty can touch 12,000 in five years. Generally, we have seen that Sensex level is three times that of Nifty. If Nifty will be at 13,000 in the next five years, then approximate Sensex level could be around 39,000-40,000.
This article taken from ET: http://m.economictimes.com/sensex40...just-two-years/PDAET/articleshow/33823559.cms
From a technical perspective, the recent breakout in Indian markets to new highs is a signal that the long-term uptrend off 2003 lows is resuming. This implies an upside target for the BSE Sensex of 39,707 (up 75 per cent) over 12-24 months," the report said.
In the short term, the brokerage sees a correction in the markets to 21,483-22,023 which should offer an attractive buying opportunity.
According to the report, both fundamentals and technicals agree on a positive market outlook.
"The technical view is aligned with our positive fundamental "trend-reversal" view of India since growth recovery and below-average valuations support market upside. Fundamentally, however, we are looking at more gradual market gains, ie, around a 15 per cent return Cagr over a two-year period," the report said.
It expects cyclicals to benefit the most in next one-two years on the basis of both fundamental and technical factors and see them outperforming the exporters.
The common buy ideas, according to the report, emerging from a technical and fundamental analysis are GAIL, HDFC Bank, L&T, Maruti Suzuki, Reliance Industries and SBI.
The Indian markets have been on a tear since the rally began in February 2014. On the back of strong dollar inflows from the foreign institutional investors, the Sensex hit an all-time high of 22,792.49 on April 10.
With the macro economic data looking positive, the economic activity is expected to gather steam by 2015. In the near term, high inflation are expected to keep the interest rates high which is hurting the growth.
Last month, Raamdeo Agrawal, joint managing director, Motilal Oswal Financial Services Ltd, had told ET Now that the Nifty can touch 12,000 in five years. Generally, we have seen that Sensex level is three times that of Nifty. If Nifty will be at 13,000 in the next five years, then approximate Sensex level could be around 39,000-40,000.
This article taken from ET: http://m.economictimes.com/sensex40...just-two-years/PDAET/articleshow/33823559.cms
