Domestic stock markets may have bottomed out and a huge rally is on the cards, says Sanjiv Bhasin, executive vice president (markets & corporate affairs) at IIFL. 6,700-6,800 on the Nifty represents the final leg of correction, after which Nifty will start its upward journey soon, he added.
"I differ from most people who say that we are in a deep bear market. I think this is a consolidation... 6,700-6,800 is the final leg of third wave of this correction. Although we have not reached that level, we think that we are close to a bottoming out process," said Mr Bhasin.
According to Mr Bhasin, Friday's low of 6,869 on the Nifty is likely to hold till budget, which will be presented on February 29.
'I think stronger hands are definitely building positions... A global rally is in the offing, in which India will also participate," he added.
Mr Bhasin expects a bull rally to take off by the end of March or in early April, which he says will take the Nifty to 8,500-9,000 over the next one year.
"This is a brilliant buying opportunity... Investors having an investment horizon of six-nine months can start buying now, but traders should build long position only above 7,240 in Nifty," he told NDTV Profit. (Watch)
Stock Talk:
Buy Lupin: After two quarters, Lupin surprised the market with its earnings and margins have also expanded. In a market where fear is at all-time high, this is a good stock to buy.
Buy Cipla: It is a very good stock to accumulate at current valuations.
Sun Pharma, Infosys and HUL are his top picks on the defensive side.
Buy Bank BEES, Nifty BEES: One should be overweight on Nifty BEES, Bank BEES, where volatility is very high but opportunity is great.
