Nifty may correct 8-10% after making a top over 16,000: Mehul Kothari, Anand Rathi

Domestic equity benchmarks BSE Sensex and Nifty 50 were flat after hitting record highs on Friday. Among the sectors, the pharma index added over a percent while the smallcap index hit fresh record high. The BSE Sensex surged to a fresh peak high of 53,290, while Nifty 50 rose to a new all-time high of 15,562. Mehul Kothari of Anand Rathi spoke to Money9 and said, "We are hopeful that Nifty we claim 16,000 however we believe after a short run up post 16,000 up until 16,500 or so, there may be an 8-10% correction in markets. This correction is long due and will be seen as a healthy one. Long term investors can use the dip to enter into quality stocks" For the Nifty Bank, he believes it could rally to 37,700 and this will aid the Nifty to reach 16,400-16,500. As for a strategy for traders, he said, "It will be better for investors to remain stock specific. Positional traders can start liquidating positions around 16,400 levels."

Stock Recommendations

CESC | Buy | Target: 920 | Stop Loss : 780 Godrej Properties | Buy | Target: 1700 | Stop Loss: 1500 Bayer Crop | Buy | Target: 6650 | Stop Loss: 5555