Nifty can test 11,500 in coming months, says Sumeet Bagadia of Choice Broking.Domestic equity benchmarks are set for third day of gains on the back of buying interest in banking heavyweights like HDFC Bank, IndusInd Bank and Yes Bank.
The SP BSE Sensex rose as much as 239 points to 37,775 and the NSE Nifty 50 Index climbed as much as 43 points to 11,344.25.
In the last two sessions, Sensex has advanced 2.35 per cent and Nifty has surged 2.41 per cent, taking both the indexes to their highest levels in nearly six months.As of 1:53 pm, the Sensex traded 0.6 per cent or 224 points higher at 37,760 and the NSE Nifty 50 Index was up 0.34 per cent or 39 points at 11,340."Nifty is looking strong on charts and it can re-test all-time high levels seen in August last year," Sumeet Bagadia, executive director at Choice Broking told TheIndianSubcontinent over phone.He advises traders to go long on Nifty for targets of 11,500 and 11,700 with stop loss at 11,200.
Mr Bagadia expects the targets to be achieved in next two-three month and does not rule out volatility.Five of 11 sector gauges compiled by National Stock Exchange were trading higher led by the Nifty Bank Index's 1.57 per cent gain.
Financial Services, Private Bank indexes on the NSE also rose over a per cent each.
On the flipside, Nifty Metal and Nifty Media Indexes were among the worst performers as both the indexes dropped nearly 2 per cent each.The mid- and small-cap shares were underperforming their larger peers as the SP BSE MidCap and SP BSE SmallCap Indexes dropped 0.3 per cent each.IndusInd Bank was top gainer in the Nifty 50 basket of shares, the stock rose 4.27 per cent to Rs 1,636.
Yes Bank, HDFC Bank, Bajaj Finance, HCL Technologies and HDFC were also among the gainers, up between 1.5 and 3.75 per cent each.
On the other hand, Indian Oil, Vedanta, Bharti Airtel, Zee Entertainment, Coal India and JSW Steel were among the laggards.The overall market breadth was negative as 1,502 shares were declining while 1,052 were advancing on the BSE.