“We advise investors to be stock-specific during this rally. We focus on Midcap stock into Banking, IT, Financials etc.,” says Girish Sodani, Head of Equity Market at .
In an interview with ETMarkets, Sodani, said: “On the upside 18520-18600 will act as a stiff resistance. Important support for Bank Nifty stands at 41,880 and 41,650” Edited excerpts:
A volatile week for equity markets. What led to the price action?
The Indian benchmark indices faced volatile sessions in negative sentiments last week but bounced back strongly as the Nifty50 crossed its 52-week high amid positive global cues.
US inflation data and other triggers such as appreciation in the rupee helped the sentiments. At close, the Sensex was up 1.95% & Nifty was up 1.78%.
The domestic equity market rallied with the support of banking & IT stocks. On Friday, the Nifty Bank advanced to its fresh all-time high.
The rally was supported by gains in
twins, which jumped over 6%. FII data also showed a positive impact including a net buy of Rs 3,958 cr and DIIs were also net buyers to the tune of Rs 615 cr.
How is Nifty50 likely to trade in the coming week? Any important levels that one should watch out for Nifty and Nifty Bank?
For next week, keep eye on mixed factors including the impact of Friday’s IIP Number which rose 3.1% because of the Electricity & Mining sectors.
Inflation data, trade deficit data, as well as other macro factors, will weigh on sentiments. From a commodity perspective, the OPEC monthly report for more insights on oil will be tracked.
From a technical perspective, the Nifty not only cleared the short-term resistance of 18,300 but closed above the same which is broadly positive.
The Nifty formed a bullish candle on the daily and weekly charts. Important support zone for the index are 18200-18150 while on the upside 18520-18600 will act as a stiff resistance. Important support for Bank Nifty stands at 41,880 and 41,650.
India VIX fell which is a good sign but does this mean that it is a good buy on dip market? Any strategy that traders can deploy on Nifty/Nifty Bank?
As NSE’s India VIX, a scale of the market’s expectation of volatility over the near term, dropped 7.46% to 14.41. Traders need to focus on important zone like:
1. For Nifty strong resistance is seen in the range of 18359 & 18378 with support of 18285 & 18220. On the higher side, 18400-18475 is a zone where traders could book profits.
2. Resistance zone for Bank Nifty is placed at 42176 and 42215 while supports are placed at 42097, and then towards 41980.
Small and midcaps also witnessed some selling – how should one play this theme?
Mid and smallcap stocks rallied in the second half of the session on Friday. We expect the momentum to continue in the coming week.
We advise investors to be stock-specific during this rally. We focus on Midcap stock into Banking, IT, Financials etc.
In terms of sectors, healthcare stocks saw selling pressure while metal stocks attracted buying. What led to the price action?
We are positive on the healthcare sector because of good quarterly numbers and strong fundamentals. On the sectoral front, fresh buying saw seen in I.T & Metal indices which rose 2-3% each, while profit booking was seen in FMCG, Healthcare, FMCG & PSU Bank stocks.
The sharp reversal in the net profit of metal and mining companies in (Q2FY23) is yet to show in the stock price and market capitalisation of these companies.
(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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