Nifty is headed towards a new high of 21500. Buy on Dips: Atul Suri

TL;DR: I have become very bullish. We are on the cusp of something very big. This is a great time for India to buy on dips. Nifty could head to around 21500. This offers a very good opportunity for investors to deploy money: Atul Suri

Nifty is headed towards a new high of 21500. Buy on Dips

Atul Suri is very bullish about the state of the Indian stock market and has strongly recommended investors to buy stocks on dips.

"I have become very bullish. If the corrections are there people should use this as an opportunity to deploy money," he said in his latest interview to ETNow.

"The sentiment is bad and this is a great time for India to buy on dips. Yes, we will correct along with global markets but we will correct less and this offers a very good opportunity for investors to deploy money because we are on the cusp of something very big," he added.

Suri opined that the Nifty is headed towards a new high of 21500.

"The first move came when we are sub 18,000-17,500. We could head to around 21500," he said in plain terms.

"I think the way the current technicals are shaped up, the next up move will take us to 21500," he repeated for emphasis.

Buy Autos & PSU Bank stocks

Suri opined that Auto stocks and PSU Bank stocks are good buys and will outperform.

"Today leadership is in autos. Autos is a very good secular theme, a proxy for industrial activity, capital goods and we will find a lot of PSU banks, sectors or themes which are very closely linked to the industrial cycle and they have not done well for a decade. This is where under ownership is and here is where I am seeing leadership," he stated.

"The internals of the market, the composition of the sectors is 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. When such bull markets start, they tend to be very long," he added.

FIIs are buying aggressively

It may be noted that Suri's optimism is endorsed by the fact that the FIIs are returning to India and are buying stocks aggressively.

According to the latest article (see FIIs are making a beeline for India, causing the steep surge in the markets), overseas investors poured a net $7.5 billion into nine regional markets so far in August, the biggest monthly inflow since end-2020. India accounted for the lion’s share as foreigners pumped in $5.7 billion, while South Korea received $2.3 billion.

This has caused the Indian markets to surge and it is up 17% from the June 22 lows. An expert also pointed out that FIIs have so far invested about $2.5 Billion in the recent past which is merely 10% of what they pulled out. It is implicit that if the FIIs even return into Indian stocks what they have redeemed so far, the Indices will touch new highs, especially because the DIIs (Mutual Funds) are in no mood to sell.