Rajesh Palviya, Axis Securities, says midcap stocks are outperforming and this is likely to be there because when your benchmark indexes are holding at certain levels, so midcap and smallcap generally tend to move higher and this is what is exactly happening. Since last two-three-week, Nifty is consolidating in range after a rally.
Rajesh Palviya: We have witnessed a consolidation of almost for a two-week in a range of 25,000 to 24,600. So, it was the consolidation range for last two weeks and today, we have almost reached the highest point of this consolidation range. Looking at the data, still call writers are there at 25,000 and 25,100 strikes. So, that may act as an immediate resistance for the Nifty. But looking at the broader market, the way the banking and financial have moved up and other sector like real estate and other capital goods stocks have also participated in this rally.
So, the way broader market has recovered in last couple of weeks, it clearly indicates that yes, there is a possibility that we may break above 25,100 and once this breakout happens, we could see a short covering action in Nifty and then rally can extend further towards 25,400 to 25,500 in the coming week. So, view is bullish. Buy on dips would be the strategy. 24,850 should be your stop loss to buy and accumulate in this range. For Bank Nifty, it is a clear breakout. Bank Nifty is now at a new all-time high trajectory. The way short covering has triggered post RBI policy, we could see another rally to extend in the coming week. 57,000 we are projecting a target for Bank Nifty in the continuation of this up move. Buy on dips again here also one can apply this strategy and keep your stop loss around 56,200 to hold and accumulate Bank Nifty also.
Rajesh Palviya: So, midcap stocks are outperforming and this is likely to be there because when your benchmark indexes are holding at certain levels, so midcap and smallcap generally tend to move higher and this is what is exactly happening. Since last two-three-week, Nifty is consolidating in range after a rally. So, the major buying interest has been shifted to the midcap and smallcap and we have witnessed most of the midcap and smallcap space have done well and the kind of rally which we have unfolded in last two-three week, there could be another rally of 3% to 4% in this space in the coming week.
So, yes, one should remain invested in this midcap and smallcap space and quality midcap and smallcap can do well and the way a breakout has happened on the near-term, short-term chart, that clearly shows that yes, buying interest is very much there in the midcap and smallcap space and we could see good traction going forward also. So, on index level 24,800 one needs to keep as a stop loss and if these levels are intact for some more time, so we could see another 2% to 3% kind of up move in midcap and smallcap space.
ET Now: Given the kind of market setup we have right now, help us understand which are your top picks at this point.
Rajesh Palviya: Two stock ideas, both are on the buy side. First one is from the real estate space that is Oberoi Realty. The way stock has now managed to give breakout of the almost 8- to 10-week consolidation range and now stock is forming a rounding bottom sort of formation on a daily chart. Long built-up was there in the derivative data.
So, looking at the overall setup for Oberoi Realty, we believe that this stock may extend its gain, possible target towards 1950 to 1960 in the coming week, one can keep a stop loss towards 1888 to buy Oberoi Realty.
The second stock that is from the healthcare space, Fortis Healthcare is looking very attractive. Stock is almost trading near to its all-time high trajectory. The way stock is moving in ups sloping channel on a weekly chart, that clearly indicates that there is a sustained buying action is happening in this counter. Looking at the breakout on daily chart, we believe that Fortis can extend its gain in the coming week, possible target towards 795, so one can buy this stock with stop loss of 748.
ET Now: A big day for the market coming in. We have finally managed to break above that range that Nifty was stuck in. We have managed to touch the 25,000 levels. From here on, do you see now the bulls really take charge because we have managed to surpass these levels, it is a wait and watch whether we sustain it but what do you see on the technicals for the Nifty and Nifty Bank going ahead?
Rajesh Palviya: We have witnessed a consolidation of almost for a two-week in a range of 25,000 to 24,600. So, it was the consolidation range for last two weeks and today, we have almost reached the highest point of this consolidation range. Looking at the data, still call writers are there at 25,000 and 25,100 strikes. So, that may act as an immediate resistance for the Nifty. But looking at the broader market, the way the banking and financial have moved up and other sector like real estate and other capital goods stocks have also participated in this rally.
So, the way broader market has recovered in last couple of weeks, it clearly indicates that yes, there is a possibility that we may break above 25,100 and once this breakout happens, we could see a short covering action in Nifty and then rally can extend further towards 25,400 to 25,500 in the coming week. So, view is bullish. Buy on dips would be the strategy. 24,850 should be your stop loss to buy and accumulate in this range. For Bank Nifty, it is a clear breakout. Bank Nifty is now at a new all-time high trajectory. The way short covering has triggered post RBI policy, we could see another rally to extend in the coming week. 57,000 we are projecting a target for Bank Nifty in the continuation of this up move. Buy on dips again here also one can apply this strategy and keep your stop loss around 56,200 to hold and accumulate Bank Nifty also.
ET Now: The largecaps have been stuck in a range. Of course, there were individual movers, but largely the largecaps were in a range. It was the SMIDs that were really giving an outperformance for now. Tell us on the charts how do you see the broader end of the market, the small and the midcaps moving ahead because they have been clearly outperforming. Do you see further up move in that area?
Rajesh Palviya: So, midcap stocks are outperforming and this is likely to be there because when your benchmark indexes are holding at certain levels, so midcap and smallcap generally tend to move higher and this is what is exactly happening. Since last two-three-week, Nifty is consolidating in range after a rally. So, the major buying interest has been shifted to the midcap and smallcap and we have witnessed most of the midcap and smallcap space have done well and the kind of rally which we have unfolded in last two-three week, there could be another rally of 3% to 4% in this space in the coming week.
So, yes, one should remain invested in this midcap and smallcap space and quality midcap and smallcap can do well and the way a breakout has happened on the near-term, short-term chart, that clearly shows that yes, buying interest is very much there in the midcap and smallcap space and we could see good traction going forward also. So, on index level 24,800 one needs to keep as a stop loss and if these levels are intact for some more time, so we could see another 2% to 3% kind of up move in midcap and smallcap space.
ET Now: Given the kind of market setup we have right now, help us understand which are your top picks at this point.
Rajesh Palviya: Two stock ideas, both are on the buy side. First one is from the real estate space that is Oberoi Realty. The way stock has now managed to give breakout of the almost 8- to 10-week consolidation range and now stock is forming a rounding bottom sort of formation on a daily chart. Long built-up was there in the derivative data.
So, looking at the overall setup for Oberoi Realty, we believe that this stock may extend its gain, possible target towards 1950 to 1960 in the coming week, one can keep a stop loss towards 1888 to buy Oberoi Realty.
The second stock that is from the healthcare space, Fortis Healthcare is looking very attractive. Stock is almost trading near to its all-time high trajectory. The way stock is moving in ups sloping channel on a weekly chart, that clearly indicates that there is a sustained buying action is happening in this counter. Looking at the breakout on daily chart, we believe that Fortis can extend its gain in the coming week, possible target towards 795, so one can buy this stock with stop loss of 748.
