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Nikkei to crack the 20,000 level: Strategists

Japan's Nikkei 225 share index is set to push through 20,000 points thanks to ultra-easy monetary policy rekindling confidence in the world's third largest economy, a raft of equity experts told CNBC on Wednesday.

"We are long the Japanese equity market and I feel very comfortable with that position," Bob Parker, the senior investment, strategy and research advisor at Credit Suisse, told CNBC.

Parker believes that the benchmark will outperform its peers adding that a 10 percent rise over the next six months is "not unreasonable." Ian Wright, the director of investment management firm Morant Wright, told CNBC that the 20,000 point level is achievable and said that the Bank of Japan has essentially been given an assignment to "buy the market" to ward off the weak inflation that has plagued the country for decades.

Read MoreBOJ keeps QE intact in wake of shocking GDP

Named after Japan's Prime Minister Shinzo Abe, the strategy of "Abenomics" cranked up a level this week following disappointing growth data on Monday. Abe has called for snap elections to try to gain a larger mandate to push through yet more stimulatory measures. This comes after surprise easing from the Bank of Japan (BOJ) at the end of October which fueled yet more gains for the Nikkei.

On Tuesday, the Nikkei 225 posted its biggest gain in two weeks following Abe's announcement of an early election poll, as well as a delay in next year's sales tax increase, which is seen as likely to bring more measures to stimulate growth. This came a day after new data showed that the economy contracted an annualized 1.6 percent in the July-September quarter.

The Nikkei has gained 6.5 percent this year which pales into insignificance when compared with the increase of 57 percent seen last year when the country's central bank aggressively expanded its balance sheet and helped stocks higher and its currency lower. The index now stands at 17,288 points but is still way off a record high of 38,915 points in 1989 when the country was enjoying its economic zenith.

Read MoreThe yen looks like it's ready to get crushed

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Despite the policies put in place by Abe since he came to power in December 2012, Wright believes that the Japanese have yet to feel confident in their economy and held back from delving into their own stock market. Having said that, the fund manager - who specializes on Japan - says that Japanese corporates are "very confident," shown by an increase in buybacks - when companies buy their own shares.

Julian Jessop, the chief global economist at Capital Economics, believes that the 20,000 level will be just a stepping stone for the index if the nation's currency continues to depreciate against the dollar.

"Based simply on the recent past relationship between the currency and equities, a yen/dollar rate of 140 would be consistent with a surge in the Nikkei to as high as 23,000 (points)" he said in a research note on Monday.

Read MoreAbenomics' direction uncertain after GDP shock

In reality, he believes that factors like global risk appetite and developments with the government's policy plans could stifle that move, but still upgraded his year-end outlook for the benchmark.

"We are raising our end-2015 forecast for the Nikkei from 18,000 to 20,000 – still a gain of around 18 percent from Monday's close of 16,974," he said.

Not every market-watcher is as bullish as Jessop, though. In a commentary piece for CNBC on Monday, independent technical analyst Daryl Guppy estimated that Nikkei gains could be limited following the shock miss for gross domestic product (GDP).