ROHIT SRIVASTAVA
FOUNDER, INDICHARTS.COM
What is the outlook for indices after Nifty’s 9%-plus rally last week?
The rally in the market should continue as the buying momentum is still strong. Nifty has broken past the previous high and 14,700 should be a good support from where we can head toward 15,300 in the coming days. Bank Nifty needs to consolidate a bit before it can continue its move, 34,240 should be a support in case of a decline.
Which are the best stock/sector bets at this juncture?
I expect some sector rotation going forward, Friday witnessed large volume in banks that shows over-enthusiasm in the short term; so maybe we need to shift our focus away from banks to other sectors. Metal stocks should pick up as the Dow Jones metals and Mining index moved up almost 4% on Friday night on the back of advances in the prices of commodities. PSU stocks should also remain in focus given the budget announcements with the momentum is still strong in these stocks.
What should investors do?
Many investors have been waiting for a decline in the market to get back in, but still missed out on opportunities like the decline just before the budget due to the negative sentiment that is still rubbing off on them from the pandemic. The approach should be to look at stock-specific declines that are often deeper and find opportunities there. In a market where all sectors are starting to participate, the rotation ensures that index level declines are small and that can be misleading. Waiting for a big correction in frontline indices would be a mistake.
SANDEEP PORWAL
TECHNICAL AND DERIVATIVE ANALYST,
ASHIKA STOCK BROKING
Which are the best stock/sector bets at this juncture?
Nifty added major gains above the 70-month long trend line which is drawn by adjoining the highs of March ’15 & Jan ’18 on monthly charts, the trend remains unabated; however, we now expect a phase of consolidation at the prevailing levels. The level of 15K should be a point of tussle between the old bulls and newly-turned bulls post the union budget (bears lost the firepower so far). The approach shall be buying on dips. The pace of FII inflows slowed; however, the stance remains bullish. The level of 14,750 shall now act as short-term support and 20-DMA (day moving average) shall be trailing stop loss for trading positions.
Which are the best stock/sector bets at this juncture?
Among the sectors, we expect Nifty Pharma, Financial Services, Infrastructure and Realty to remain in focus. Stock-specific fresh long is advised in Godrej Properties, ACC, Muthoot Finance, Dr Reddy’s and HDFC Life, expect a gain to the tune of 5% and above.
What should investors do?
Multiple short squeezes in recent times must have resulted in the loss of firepower for the bears. In addition, fear of missing out of both retail and institutions clientele will maintain the buoyancy on D-street. Intermarket triggers are so far muted by and large. However, renewed buying interest on DXY and Brent crude may result in a phase of whipsaw trades.
GAUTAM SHAH
FOUNDER, GOLDILOCKS PREMIUM RESEARCH
Which are the best stock/sector bets at this juncture?
This is a unique bull market. India seems to be in a Goldilocks situation, which can last for a few weeks more. A number of factors like a favourable budget, strong global markets, solid earnings season, liquidity and great looking chart set-ups have aided this rebound. We see more strength towards our medium-term target of 15,500. The recent 1,000-point dip did a world of good to the set-up as the excesses from the system were removed. Strong support has been created around 14,700, while the base is now at 14,470.
Which are the best stock/sector bets at this juncture?
The auto index continues to look like one of the outperformers. We see the index gradually moving back to 12,000. Almost all top stocks in the sector, Maruti, Bajaj Auto, Hero MotoCorp have positive set-ups. Our bullish view on FMCG stays, led by ITC. We see the index rallying 10-12% over the next few weeks. Pharma and Metals have made a quality comeback. Both are likely to move past their January 2021 highs soon. The mid-cap and small-cap indices remain on a firm footing as well.
What should investors do?
The best way to play any bull market is to ride it with a trailing stop. This helps stay in the game without bothering much about the noise, news flow and events during its course. Investors are advised to stay put. Around the major resistance of 15,500 some profit booking can be considered. We could enter a phase soon where the mainline indices, Nifty/Sensex, take the backseat while the mid-caps outperform. One should be prepared to align the portfolios accordingly.
