Well, the market It’s pretty quiet. What do you think the atmosphere will be like? What would it take to shake it out of its lethargy? Do you think there will be 25,000 people soon?
Dharmesh Shah: Yes, definitely. If you remember, last time we were around 24,300 and we were expecting a gradual recovery in the market. We believe that the market should break the psychological level of 25,000 and we should head towards a target of 25,200 for Nifty. If you look at the structure of the index, SkilledThe broader picture is that the previous strong global cues are supporting the Indian market. But apart from that, if you look at the breadth of the market, it is a good indicator to gauge sentiment. The percentage of CNX 500 stocks trading above the 50-day moving average has improved from 48% to 65%. This suggests that the rally should continue, also supported by strong global cues. Even the S&P 500 has seen a breakout after the last four weeks of consolidation.
Therefore, it seems like the market has a long way to go. Yes, in the short term, with 25,000 being the psychological level, we may see some profit-taking. But, eventually, we should head towards a target of 25,200 for Nifty, with strong support at 24,400.
In terms of sectors, is there one that you find interesting? Would you focus more on defensive plays or are there other areas that interest you?
Dharmesh Shah: At the moment, we are seeing buying across all sectors. Yes, the banking sector, which has not been in the spotlight for a while, is forming a solid base around the 100-day exponential moving average (EMA).
We were talking about different sectors earlier when we lost you. Could you share your thoughts on chemicals? Are you considering anything specific in that area?
Dharmesh Shah: Yes, the chemical sector was not in the spotlight for some time, but in the last two months, many chemical stocks have shown an improvement. The technical setup looks more positive. In stocks such as Deepak Nitritewhich has risen from 2,500 to 3,100, we have seen some profit-taking. However, we believe that any dip presents a buying opportunity. We like Deepak Nitrite and are targeting a range of 3,140 to 3,150, with a stop loss around 2,880. Nocil is another stock that has been consolidating for a long time and has recently broken out. It appears to be retesting previous breakout levels and we are looking at a target of 340 to 350.
I would also like to add that public sector banks have a favourable risk-reward ratio at current levels. We remain positive on stocks like OSE, Canara Bankand Bank of BarodaIn addition, the insurance sector is emerging from a long consolidation that lasted several years. For example, HDFC Lifewhich has struggled between 2021 and 2024, is showing signs of recovery.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.