The BSE Sensex edged above the 30,000 peak for the first time on Wednesday on Reserve Bank's surprise announcement of a repo rate cut. The Nifty also hit a life-time high, its second consecutive day of record gains.
At its day high, the 50-share Nifty hit 9,119.20, but investors expect the index to close on 10,000 levels pretty soon. Anil Manghnani, director at Modern Shares & Stock Brokers told NDTV that 9,150-9,200 is the key for Nifty. (Watch)
"If Nifty takes out 9,200, then you could get a big jump of 1,000 points towards 10,200-10,400," he said.
A move above 9,150-9,200 levels will be considered to be a breakout zone from the quarterly channel, which will confirm further upside in the market, he added.
Mr Manghnani is positive about the fact that in the current rally midcap and smallcap stocks have participated more than large cap stocks. "More than that what is interesting in the markets right now is not so much the index reaching 9,000, it is the participation of midcap and smallcap," he added.
The last 1,000-point rally in Nifty (from 8,000 to 9,000) has largely been driven by the outperformance in banking stocks. Axis Bank, IndusInd Bank and Kotak Mahindra Bank have been the big contributors in the Nifty moving up from 8,000 to 9,000.
Mr Manghnani said recent outperformers in Nifty will continue to do well as foreign investors have conviction in these stocks. "Strength will remain in the stocks clocking new 52-week highs," he added.
He believes metal stocks will continue to lag as US dollar is getting strengthened, which is affecting metal prices globally.
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