• For the overall market, Rajesh Bhosale of Angel One said the Nifty could go towards 18,600-18,750. Traders should maintain a positive bias and use the dips to go long
In an e-mail interview with Mint's Asit Manohar, Angel One technical analyst Rajesh Bhosale said power and OMC stocks are likely to continue their momentum in the coming week. Angel One expert believes that Nifty is likely to continue its upward journey in coming week as well, Nifty can to move towards 18,600 - 18,750 levels.
Here are edited excerpts from that interview:
Indian benchmark indices hit higher levels on November 24 due to upbeat global markets and withdrawal of FII money. What's your read on this week's market moves?
Global markets have rallied strongly in the last one month due to a reduction in the inflation number. Our markets were already performing well and support from global peers has fueled the rally. Foreign Institutional Investors (FIIs) have also turned optimistic as they turned buyers in the cash segment in the month of November. In index futures on Thursday, 24 November, his 'long short' ratio increased to 77%.
Where do you see the indices in the coming week?
Bank Nifty continued its rally last week as it posted gains for the eighth straight week. In the week ending November 25, the Sensex entered uncharted territory. Nifty is likely to follow these moves and in the coming week also, Nifty can be expected to move towards 18,600 - 18,750 levels. Traders should maintain a positive bias and use the dips to go long. There is an immediate support near 18,300 while a strong base formation is visible near 18,100.
Strong performance was seen in the IT and banking sector this week. Are these long term bets? Any favorite area?
The banking space has been the charioteer of the recent uptrend and PSU banks in particular have taken mesmerizing steps. We remain positive on this basket but ideally one should be selective and wait for dips to enter positions as the low hanging fruit is already gone.
After being in pain for the most part of this calendar year, the IT sector has started picking up momentum since last few months. IT index is still far from its all-time highs but considering the price has crossed 200 SMA and previous swing highs, we feel further strong momentum in this basket. TCS and Infosys are the top picks from the front line, while Persistent and Mphasis are the favorites from the mid-cap basket.
Broader markets have not participated in this rally. For any reason?
The rally was mainly driven by banking space and front line counters as geopolitical tensions were looming in the background and investors and traders preferred safe bets. But now with Nifty Mid-Cap 100 interestingly placed and with Nifty 50 hitting a new high we are seeing confidence back in investors/traders which is likely to bring strong traction in this basket as well.
What are the sectors which are expected to beat other segments?
Power and OMC stocks saw strong gains in the last days of the week; The momentum is likely to continue in the coming weeks in this segment. Traders can choose to trade on intra-week dips in this segment.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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