Lawrence Barranco of India CLSA says that Nifty's upward trend has been maintained, and large stocks are making a comeback.

CLSA technical analyst Lawrence Barranco believes that the Nifty 50 chart maintains an upward trend in the market, even if there is sector rotation.

In a conversation with CNBC-TV18, Mr. Barranco stated that “there are no signs of major weakness (in Nifty 50), and large stocks have made a comeback compared to mid-cap stocks in July,” and added that although there is some hesitation in the rise in mid-cap stocks, the index has not updated a new low compared to June. Mr. Barranco has set a long-term target stock price of 37,700 for Nifty 50, and the bottom price is around 21,700.

All asset classes, including stocks, gold, and bitcoin, have been rising in tandem in recent weeks, and gold has recently broken out. “Gold, the S&P Equal Weight Index, and the Asia Pacific Bank Index began to rise.

CLSA pointed out that HDFC Bank fell in July, and Mr. Barranco said, “It seems disappointing, but stock prices are still above 50-DMA and 200-DMA. Funds are revolving for IT services in India, but there is no leadership in the IT field, says Barranco. In the telecommunications industry, RIL is the recommended stock of CLSA with a target stock price of 3500-3600 rupees.

Regarding Brent crude oil, the person in charge of the CLSA chart said there is no sign of a change in direction from the range, and there is a possibility that the current band will be maintained until the end of the year. Crude oil prices in 2024 have remained high so far, as OPEC+ supply cuts offset increased production in non-OPEC countries. Signs of poor demand in China, which is a major importer, have lowered prices from a high level at the beginning of July.

Cryptocurrency is on an upward trend, and it is expected that this movement will continue in the future, with the price of Bitcoin testing levels above 65,000 dollars this week. The fact that the Republican candidate Donald Trump appeared in the White House election is also spurring this sentiment. In a recent post, billionaire investor Mark Cuban posted on X that when Trump becomes president, “SEC (US Securities and Exchange Commission) changes are inevitable and required, so it will be easier to operate the crypto business.”

“It's a game with Bitcoin,” Cuban wrote.

The Japanese yen is up about 4% from last week. This is because it is thought that Japan began surprise currency purchases on 7/11. Japan's prominent cabinet ministers are demanding interest rate hikes from the Bank of Japan, and there is a possibility that this will boost the value of yen. As a result, the US dollar/yen exchange rate fell below 50 DMA for the first time since 2024.

Donald Trump pointed out the depreciation of the yen and yuan in an interview with Bloomberg Businessweek magazine, and expressed the view that if they win the November election, there is a possibility that they will support the depreciation of the dollar.