Market will go above 8,400 points in near terms: Kunal Bothra, Head Advisory, LKP

In a chat with ET Now, Kunal Bothra, Head Advisory, LKP, says that there is a structural change with a lot of mid-caps hitting their 52-week highs. Edited excerpts:

ET Now: Do you see 8,400 points as the high end of market?

Kunal Bothra: Not really, the markets will further hit above 8,400 points. Look at it in the context of what happened across the globe as well. If we look at just the basic US indices and the key European indices, most of the markets are trying to cover the Brexit gap but India has rallied more than 100-120 points. I think it shows not just a short term impact, which the markets have gone through but there is a structural change with a lot of mid-caps hitting their 52-week highs. We do not see that too often in a rally, which is in a six-day streak. Even though the markets consolidated today, I expect that it was a good sign. There was a lot of buying in selected mid-caps and I believe that the markets would consolidate for a day or two.

ET Now: What is your near term target for the index?

Kunal Bothra: The critical resistance which I am looking out for is 8550-8500 band on Nifty, that is where I believe that the markets could probably find some serious resistance. Till that time we may probably consolidate for a couple of days and then probably head towards that key resistance.