IT took over the week thanks to all the big results like Infosys, Wipro, TCS, Mindtree, HCL Tech. Looking forward to the new week, what are you waiting for?
Broad based nature of the market which emerged quite well. There was a strong jump in midcap and smallcap stocks. Even as the indices went into intraday consolidation, there were still plenty of stocks that were either hitting the upper circuit or closing in on the day’s highs for themselves. So all these indicate that the market sentiment is positive. But then within a rally and within an uptrend you get to phases where there is a lot of churn in terms of sectors. I think we’re starting to get into that kind of territory now. Once that churn is over and the market is back to that traditional phase where high beta stocks and high beta areas start getting into rally mode, and by that I mean specifically if banks nifty starts to recover which I’m assuming which is probably the first half of next week, then we can see the index coming back into full momentum mode again. So so far a patch of consolidation is more of a sector churn. But the bias on the indices remains extremely bullish.
What’s a big theme for you for the new week?
There are two themes I’d probably play with. One of them is the return of metal names, the breakout we’ve seen metal stock On Thursday or Wednesday, I think it’s extraordinary. They – in technical terms as we call it – have managed to hit a double bottom breakout and this is a huge double bottom pattern for the metal index forming an almost 10 percent double bottom. Which is why the breakout that happened last week was something very remarkable and important. This could possibly also mark the return of the sector as a whole. So it’s not just a short-term bounce I’m expecting, but probably a turnaround for many metal stocks going forward. Dollar index is also possibly helping the metal stocks to trade with a positive bias for themselves. And the second most important topic will be the return of Bank Nifty, rather the continuation of the Bank Index. With the kind of moves we have seen in the last two to three weeks in the form of a gain of over 4,000 points on the banking index, I believe there is a strong scope for Bank Nifty to move ahead and it will cross the 39,000 mark. can retrieve. Maybe next week or so.
It’s going to be a busy week? What strategy would you play? Which stocks would you look forward to?
The PSU subject is what I am eyeing. So the first is a buy, the stock is headed for a breakout. On Friday, we saw good price action expecting the stock to break above the Rs 900 level, hence suggest a buy with Rs 1,000 as target and a stop loss can be placed at Rs 860. Showing good price action, forming a bullish pendant on the very short term chart and breaking a downward sloping trend line for itself. So this may indicate the start of a new trend for BHEL as well, buy with target of Rs 70, stop loss of Rs 60.