Dipan Mehta, Member, BSE and NSE, feels the current rally has still some steam left. "We could go about testing 12,000 on the Sensex and maybe 3,700-3,800 on the Nifty. We could have maybe one-two down days, but on the whole we are on an upmove over here."
He feels elections will not make much difference on the earnings of companies, but feels price-to-earnings will certainly get impacted. “A fractured verdict would mean more uncertainty, which means that investors would then pay a lower P/E multiple. At the same time, if there is a strong government at the Centre, then there would be more certainty and investor would be prepared to pay a higher P/E multiple.”
Mitesh Thacker, Technical Analyst, miteshthacker.com, said he is looking at targets in the range of around 3,750. "The good part of the move, which we saw in the Nifty for the last two weeks, is the fact that the entire market was expecting some kind of correction to happen in the Nifty, instead it has turned out to be more of a sideways consolidation. The Nifty was moving in a range of 200 points, so it looks like a breather. The market has now broken out of that. Once we cross 3,520-3,530 levels, definitely we can look at levels of around 3,750."
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