ASHISH CHATURMOHTA
HEAD OF EQUITY ADVISORY RESEARCH,
Where is Nifty headed this week?
Though the market saw a bounce-back from 16,747, the move got capped at 50% of the retracement of the fall (18,096-16,747) around 17,429. Consensus expectations of Nifty EPS for FY23 broadly remain in a range of 850-865, implying 20 times forward PE limiting the downside and India maintaining its premium. Nifty needs to cross and sustain above the 17,430 level for strength to emerge on the upside for a rally towards 17,632-17,900. Breaking below 16,747, expect decline towards 16,360 and then 16,080. Till then, the market may remain sideways in a broad range of 17,450 -16,450 and consolidate.
What should investors do?
Remain invested in quality names and add on dips. We like stocks such as
, which is poised for a breakout after 18 months of consolidation. Expect Sun Pharma to continue outperformance. Festive and wedding season should see Titan doing well. In small-cap, in IT and GHCL in commodity chemicals continue to show strength.
ABHILASH PAGARIA
HEAD OF ALTERNATIVE & QUANTITATIVE RESEARCH, NUVAMA
Where is Nifty headed this week?
The current volatility is such that in the last few days we have only seen gap-up and gap-down openings, and such markets are very tricky for any directional trader. Till the October expiry, we are likely to see a wide range. 17,380 will act as a strong resistance, and supports are at 16,800 and 16,650 levels.
What should investors do?
The sustainable and momentous rally can only come with foreign institutional participation in the cash segment. We recommend NMDC as a long bet for the demerger play with a 7% target and strict 3% stop loss. ABB and TVS Motor can see another 4% to 5% up move this week as these two stocks are likely to be included in the MSCI index next month. As per our in-house quant model, we like Divis long and Sun Pharma short pair with a target of 6% and 2.5% stop loss. As a positional bet, one can accumulate Zee Entertainment at around 245-250 odd levels.
VIRAJ VYAS
TECHNICAL & DERIVATIVES ANALYST, ASHIKA STOCK BROKING
Where is Nifty headed?
Nifty ended flat at for the week and it continues to sustain above the 21-week EMA but trade inside the ‘Broadening Wedge’ pattern. On the smaller degree chart, the index appears to be consolidating in a wide range (16,800-17,400), and on an immediate basis, the index needs to stage a price-intense move above 17,250 to show bullish intent. As of Friday, record short positions exist in the market, and only a follow-through move above the 17,400 mark is likely to trigger short covering.
What should investors do?
The overall trend remains positive, and investors should ‘buy the dips’ as long as 16,800 is sustained on a closing basis. Bank stocks like
, AU Bank, and First have more steam. Sector rotation suggests value buying in L&T Infotech, , , and Sun Pharma. might make a comeback, while and will look to retrace the corrective move. Stocks like Angel One, KRBL, and Deepak Nitrite have good setups with decent risk-reward.
