SRIRAM VELAYUDHAN
VICE PRESIDENT-ALTERNATIVE RESEARCH, IIFL
Where is the Nifty headed?
Stocks staged a smart rally over the last two weeks. Nifty too has recovered nearly 10% from its March lows. We believe this upmove has more legs and the potential to stretch till 17,700 levels in the short term. On technical charts, not only has India VIX cooled off from the highs of 34 to 23, even the market breadth has improved, which is a big positive.
What should investors do?
As 17,500 is likely to offer resistance, we might see some profit taking around these levels. Traders with risk appetite can use dips to build long positions in Nifty futures for a target of 17,700 with stop loss at 17,100. Purely from a medium-term investment horizon, chemical stocks are exhibiting strong momentum (like GNFC, Chambal Fertilizers, Coromandel International, Deepak Nitrite and SRF) and can be evaluated for investment.
ROHIT SRIVASTAVA
FOUNDER, INDIACHARTS.COM
Where is the Nifty headed?
Nifty has the momentum to climb to much higher levels as seasonally the month of March offers a good reason for an important market bottom. However, in the short term, we are coming close to expiry that can bring some selling in the short term. 17,600 is a key resistance and 16,800 is support but in the medium term we should be heading back above 18,000.
What should investors do?
Focus on sectors that will do well in the unlock trade after covid. The Ukraine crisis is discounted by markets, and we should go back to sectors like auto and banking in the near term and they may do much better. Hospitality is also a very important sector as people start traveling and going on holidays. The riskreward is like a 3-4% downside and 9-12% upside from here for these sectors.
DHARMESH SHAH
HEAD-TECHNICALS, ICICI SECURITIES
Where is the Nifty headed?
The weekly price action witnessed follow through strength and formed a strong bull candle, indicating continuance of positive bias. We expect this positivity to endure in the coming weeks, paving the way for extension of rally towards 17,800 as it is 80% retracement of past two months’ decline coincided with February high. Our positive view on the market is based on the formation of higher peak and trough; along with multi-sector participation, signifies rejuvenation of upward momentum, positive global cues, cool-off in VIX, crude oil prices and easing of geopolitical concerns.
What should investors do?
Nifty has witnessed a sharp rally of 1,670 points over the past two weeks. Any retracement of the recent upmove would make the market healthy. The focus should be on constructing portfolio by accumulating quality stocks since we do not expect Nifty to breach the key support threshold of 16,800 in the coming weeks. Sectorally, IT, BFSI, metal to outperform while beaten down auto, Infra and realty offer favourable risk-reward. On the stock front, Infosys, Reliance Industries and SBI remain in focus with 5-7% upside. Among midcaps, we prefer Mindtree, ABFRL, Voltas, Inox leisure and BEL with 8-10% upside
