Nifty at 10,000: Where should you invest now?

Aided mainly by optimism on June-quarter results, prospect of a good monsoon and strong economic climate, the Nifty50 index hit the psychologically important 10,000-mark for the first time ever in 21 years. Given the development, analysts say the markets could see a bout of profit booking, especially ahead of the futures & options (derivatives) expiry due Thursday. A K Prabhakar, head of research at IDBI Capital, for instance, expects 200-300 point correction in the Nifty50 index now given the sharp run up on a year-to-date basis. Even then, they feel there are investment-worthy sectors and stocks where one can invest but one needs to be selective. We poke to leading analysts across brokerages and here is what they suggest: Nifty Trading Tips

Banks and NBFCs

Banking stocks remain analysts’ favourite and they suggest investing in private sector banks instead of their PSU counterparts. “Among private sector banks, investors should look at Axis Bank, HDFC Bank and Yes bank in large caps and IndusInd Bank and RBL Bank among midcap banks. In PSU Banks, State Bank of India and Bank of Baroda looks attractive,” said Gaurang Shah, Head Investment Strategist at Geojit Financial Services. Analysts are also positive on housing finance companies, diversified finance companies and micro-finance companies. The Nifty Finance index has also rallied over 30% in 2017, so far. According to Prabhakar investors can also look at stocks that haven’t rallied much in this space, such as Mannapuram Finance, M&M Finance. Future & Option Trading Tips