Nifty has been showing remarkable stability within the range of 18,800 to 19,000 points. This range will continue to hold strong, and it is unlikely to be broken in the near future.

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Laurence Balanco of CLSA, in an interview with CNBC-TV18, expressed his views on the Nifty's trading range and highlighted the potential for re-rating when the market remains range bound.

He said, “The real breakout points, and where the major support comes through is back at the 18,800 to 19,000 area. We don't think that it will be broken.”

The Nifty's consistent performance within this range is attributed to various factors, including macroeconomic indicators, company earnings reports, and global market trends. Balanco stressed that these stable conditions have set the stage for potential re-rating of stocks.

For those unfamiliar with the term, "re-rating" refers to a situation where the market adjusts the valuation multiples of certain stocks or the overall market. When markets remain range-bound, the likelihood of a re-rating becomes more pronounced. This means that stocks previously overlooked or undervalued may experience an increase in their market value, providing investors with attractive opportunities.

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(Edited by : C H Unnikrishnan)