nifty: Nifty headed towards 21,500 in next up move, will outperform US market: Atul Suri

Amid the fear surrounding moves made by the US Fed, the market sentiment remains bad but it is a great time to buy on dips, said Dalal Street veteran Atul Suri. He said that the headline index Nifty could be headed towards 21,500 in the next leg of the rally.

“There are issues with the Fed and there is fear that in the short run the market will be under pressure. But I have never seen markets fall off massively after 11 months of underperformance or 11 months of correction and after a good percentage fall,” said Atul Suri, Marathon Trends PMS.

Talking about the future moves of Nifty in this cycle, he said that the next leg up should take it to around 21,500, which will just be a start.

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After the US Fed chair Jerome Powell‘s ultra-hawkish message at the Jackson Hole event on August 26, 2022, the S&P 500 lost 5.8 per cent, while the Nifty is flat during the period after today’s fall.

“We will correct along with global markets but we will correct less. This is a very good chance for investors to deploy money because we are on the cusp of something very big.

This is a phase where I almost get a 2004 déjà vu simply the way the sectors are moving and the way the market is shaping up,” he told ET Now.

“For me, I have become very-very bullish on the market. If the corrections are there, people should use this as an opportunity to deploy money,” he added.

After hitting a peak of 18,604.45 on October 19, the Nifty has been in a correction mode for almost 11 months. Suri said the pain in the portfolios is a lot more because the growth space has suffered. Nifty IT index, for example, is still down around 18 per cent in the last year period.

Suri is bullish on auto stocks and sectors that are very closely linked to the industrial cycle and have not done well for a decade. “This is where the under ownership is, and here is where I am seeing leadership,” he said, adding that defensives like pharma and IT are suffering.

“The internals of the market and the composition of the sectors are giving me a sense that as a country, we are likely to see a revival of industrial activity, which has been eluding us for almost a decade and when such bull markets start, they tend to be very very long. In fact, I dare say that we will outperform the US markets also,” he said.

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