Expect Nifty to hit 8,900 in two months: Shubham Agarwal, Motilal Oswal

In an interview with ET Now, Shubham Agarwal, VP – Head Technical Research, Motilal Oswal, shares his views on markets. Excerpts:

ET Now: Where are we positioned on the Nifty and what is your call on how one should look at trading the market?

Shubham Agarwal: If we look at the movement of Nifty, early this month it broke out from a downward sloping wedge, which was a clear indication that the overall trend for the Nifty has again turned positive.

We continue to believe that 8,900 is the initial target that we might see in Nifty in time span of one-and-a-half to two months. If you look at the recent development for the past three-four trading sessions, it is more of a result of an optimism that was developed where we saw writing off put options that was happening around the strike of 8500.

If we look at the Nifty behaviour now as to how it is placed, I believe that it is already quoting at a very good support around 8300. However, the medium term stoploss for any long trade for now should be kept at around 8,180. With that as a stop loss, we believe that in the near term we might see the Nifty headed towards 8,900.