New Delhi, Sep 11 (IANS): Banks and IT could be the sectors which can take the index higher from the current level, says Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities.

However, one must note that the sectors which pushed the Nifty up till 20,000 may not be the same which will push it to 21500. Nifty may have hit an all-time high but not all the sectoral indices have followed it, Sheth said.

Nifty IT is still trading more than 17 per cent below its all-time highs. If markets were to move significantly above current levels, then it cannot happen without a heavyweight sector like IT being left behind. Bank Nifty is also trading at a relatively cheap valuation.

Nifty crossed the psychologically important mark of 20,000 points today. With a breach of this important resistance level we believe that the next target to look forward to in Nifty is 21500 which is 3000 points from the main breakout level of 18500, Sheth said.

Despite the markets hitting new all-time high the valuations are still reasonable. Nifty’s trailing twelve months PE is at 22.39 which is slightly above its long-term median of 20.62. Thus, Nifty has enough room for further expansion especially given that we are entering an election year, the room for upside is wide open.

Rahul Sharma, Director, Head- Technical & Derivative Research, JM Financial Services said the good thing is there new leadership from IT, Capital Goods and PSE's. BFSI which remained under most pressure is back to positive territory. We are on track to hit 20,432 this month and 21,000 by Diwali.