Indian equities have been range bound in April but analysts hope the Nifty index to take out key resistance levels in May. Deven Choksey of KR Choksey Securities says the uncertainty around issues such as the general anti-avoidance rule or GAAR and focus on pushing reforms might boost investor sentiments in May.
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Market outlook: Optimistic that the Nifty will cross the barrier of 5,340-5,410 in May. The range may be 5,100-5,400. If the Nifty crosses 5,400, markets may trade in 5,400-5,650 levels. Valuations are evenly poised for growth.
Triggers: The Finance Bill is likely to be passed with some changes. GAAR is likely to be passed with prospective effect, which will be a positive. Markets are likely to attract some money from ETF, considering the rupee is at an elevated level. There is some possibility that reforms would be pushed.
Global markets: Global macros are looking relatively stable. Hope to see better times going forward.
Stock tips: All buy with one year target
a) Axis Bank: Target price of Rs 1400 per share
Infra and consumer loans should rise and credit growth will pick up. Valuations are attractive.
b) IDFC: Target price of Rs 160 per share
Growth in infra space should gain traction with more projects getting cleared, which could result in credit growth.
c) Sterlite Tech: Target price of Rs 60 per share
Focus on laying down transmission lines. Margins could be better for aluminium growth conductor business. Fibre optic cable business could do well with 4G kickoff.
d) Praj Industries: Target price of Rs 90 per share.
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