Strong moves in the banking counters pushed benchmark indices higher, which was further supported by FMCG and IT stocks, said Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher in interaction with ETMarkets.com. She believes PSU and defence stocks still have steam left in them. Read edited excerpts:
Nifty50 managed to settle about the 17,500 mark for the week, rising about 2%. What were the key reasons that lifted markets higher?
Banking stocks like , , and maintained a strong trend and picked up well to lift the Bank index and in turn helped Nifty50 also gain. Also, FMCG heavyweights like and performed well to help the index rise further. There was some support from IT giants like and TCS, which saw a gradual pick up during the week.
Nifty50 managed to settle about the 17,500 mark for the week, rising about 2%. What were the key reasons that lifted markets higher?
Banking stocks like , , and maintained a strong trend and picked up well to lift the Bank index and in turn helped Nifty50 also gain. Also, FMCG heavyweights like and performed well to help the index rise further. There was some support from IT giants like and TCS, which saw a gradual pick up during the week.
Nifty Bank outperformed Nifty50 by a very wide margin. What is your take on it? Do you see this trend continuing?
Nifty Bank outperformed Nifty50 index as banking stocks like Axis Bank, ICICI Bank, Kotak Bank and SBI posted strong gains. Further, with positive bias sustaining in these stocks and immense upside potential visible, we anticipate further upmove in the coming days with Bank Nifty targets of 41,500-41,700 at open.
Next week, despite being a truncated one, is important considering the October series expiry. Where do you see the expiry for Nifty50 and Nifty Bank? How should traders trade to make the most out of it?
In spite of a truncated week, we anticipate much volatility in the market with result season also going on. With fluctuations visible, we expect Nifty expiry to be anywhere around the 17,500 zone while Bank Nifty can end near the 41,500 zone. Traders can play safe with the Nifty index while they can speculate with Nifty Bank for further upward movement.
Metal stocks remained weak for quite some time and their results also have failed to woo investors. What is your take on it? Do you like any stock from this segment?
Metal stocks have been hovering within a range for quite some time and this consolidation may continue for quite some time more. But one can look at stocks like
, and which have maintained their positive bias.
ITC and Axis Bank have been D-Street showstoppers recently. What is your take on them? Also, what are the
charts
suggesting for ?
ITC and Axis Bank have outperformed the market with their excellent performance during the last 3-4 months, gaining significantly. Even at current rates, the trend remains strong. One can expect further gains in the coming days for these two stocks. Some consolidation cannot be ruled out but from current levels, further gains to the tune of 8-10% are likely.
For Yes Bank, the near-term support of Rs 15 is looking strong and maintaining above the significant 50 EMA level of Rs 15.90 would imply a further upward move for short-term targets of Rs 18-19 levels. Further, if a decisive breakout occurs, then one can anticipate fresh further upside moves.
PSU stocks and defence players have been in favour lately. Is there more steam left in these sectors?
Yes, PSU stocks and defence stocks like
, BEML, Bharat Forge, Mazagon Dock, and have been doing well lately with decent gains. We anticipate further gains in these stocks with indicators and trends still remaining intact. One can go for HAL, BEL, and Bharat Forge which we feel would yield good returns with a favourable risk-reward ratio. They have immense upside potential from current levels.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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