We believe a lot of companies in the small and mid-cap space are ready to outperform, given that they’ve completed or are close to completing their capacity expansions, are sitting on lean balance sheets, generating healthy cash flows and are trading at reasonable valuations post the correction.
The pharmaceuticals sector has witnessed a sharp correction and quality stocks in the sector are available at compelling valuations.
Markets work on expectations, and with commodity prices cooling off and global inflation contracting, equity investors are buying on the expectation of an economic recovery.
Holding the Option beyond a certain point in time was Dysfunctional Risk. Since the extra holding period did not give enough rewards to justify the risk of Buying the Option.
Friday's low point (17,348) can act as a support in the next session followed by crucial support at 17,150-17,000 levels, while if it crosses the near-term resistance (17,500) in coming sessions, then the index can climb towards 17,800 levels, experts said.
Federal Bank, ICICI Pru Life Insurance, Oberoi Realty among the stocks. With the Sensex and the Nifty reversing losses after the RBI decision, experts say the Nifty’s next stop could be 17,800. Banking and financial services, FMCG, IT, metal and pharma stocks supported the market.
Redington (India) saw strong buying interest and had a gap-up opening on Thursday. It climbed 9.1 percent to Rs 139.55, and formed a large bullish candlestick pattern on daily charts with significantly higher volumes.
On the weekly chart of Alkyl Amines, the prices have shown a bounce on the upside. In the prior week, prices gave a breakout from the Falling Wedge pattern which is a bullish reversal pattern, said Vidnyan Sawant of GEPL Capital
The street may maintain caution till the meeting outcome and if the index gets back firmly above 17,450, then there is a fair chance of the index moving towards 17,800 levels, with crucial support at the 17,000 mark, experts said.
India is in a sweet spot and the equity market P/E premium versus peers should remain elevated given the marked improvement in macroeconomic fundamentals and significant improvement in corporate balance sheets
Dr Lal PathLabs witnessed an ascending triangle pattern breakout on July 29 which was placed above Rs 2,250 levels in the daily time frame. After breakout, prices are showing a gradual upside movement in a small steep formation.
"What a great setup we are having at Greenply Industries -- precise bullish BAT pattern which got completed at 0.886 ratio on the daily chart with N-wave formation near the potential reversal zone of Rs 170-175."
The broader market underperformed the benchmark. The Nifty Midcap 100 and smallcap 100 indices fell 0.7 percent and 0.5 percent
If the US inflation which is around 9 percent remains sticky even at a slightly lower level, it might be difficult for Fed not to take more rate hikes. Hence it is difficult to foresee any immediate change in Fed stance.
After a long underperformance, Yes Bank prices have finally given a breakout from its immediate short term resistance which was placed around Rs 16-16.20. The stock has witnessed huge buying interest which can be seen through its high volumes.
Vedant Fashions is coming out of 6 months of consolidation with heavy volume followed by a breakout of Bullish Flag formation. However, the recent move is a little stretched therefore some pullback can't be ruled out but that will provide a good buying opportunity.
Traders should adopt a neutral stance by confining themselves to the fence, Mazhar Mohammad of Chartviewindia has said
The Nifty50 has rallied 14 percent from June lows of 15,183 to 17,340 levels on August 1. With this recovery, the rally has also broadened with midcap and smallcaps participating.
Corporate earnings are on expected lines and the consumer sector has demonstrated healthy trends, which is an indicator of a strong economy.
Indoco Remedies has broken out from the consolidation with jump in volumes. It has also broken out from downward sloping trendline on the weekly charts.
Stocks that were in action included Rain Industries which jumped 8.6 percent to Rs 191.35, the highest closing level since April 11, continuing uptrend for fourth consecutive session. The stock has formed bullish candle on the daily charts with significantly higher volumes
If the Nifty50 sustains above 17,150, the low of August 1, in the coming session, then 17,400 can be the next target, followed by 17,500, with 17,000-16,950 as a crucial support area, Mazhar Mohammad of Chartviewindia says
With the consistent rally and holding on to previous days' low points, the support for the Nifty has also shifted higher to 17,033, followed by 16,950 levels
One should invest in companies that are competitively well positioned and stay disciplined on valuations.
Technical indicators are giving positive signals as Info Edge is trading above the 20 and 50 days SMA and there also recently a positive moving average crossover as the 20 days SMA moved above the 50 days SMA.