Rahul Sharma, Associate Director and Head Technical and Derivatives Research at JM Financial Services, gave his views on fundamentals of the market as well as on various stocks.
He believes banks are expected to remain under pressure. “PSU banks have been under pressure, although private banks relatively have fared well. As long as broadly the market doesn’t come out of this volatile zone and as long as Bank Nifty does not cross 36,200 on the upside, we expect this downward spiral to continue whereby we could see Bank Nifty testing 33,200-33,000 levels on the downside,” he said.
IT index was the major outperformer among all sectoral indices and from January, the IT index has been consolidating.
“There are greenshoots, some of the largecap IT names, midcap IT names have also started participating. We are expecting the IT index to continue with the outperformance given the broader market volatility and we could very well see IT names hitting life highs in the month of April."
"Technical set ups and the indicators are clearly suggesting that IT stocks in general should outperform and there are good buying opportunities in these stocks,” he said.
“From the IT pack, HCL Technologies looks pretty interesting at current levels and can be bought with a one-month timeframe. You can get into HCL Technologies for a target of Rs 1,100-1,150,” he stated.
Sharma believes a follow-up buying is due in the metal index.
“From the metal pack, we like JSW Steel. It looks pretty solid for a Rs 450-460 kind of an upmove. It can be bought with a stop loss of Rs 414,” he said.
Bajaj Finance has been one of his favourite trading counters from the non-banking financial companies (NBFCs) space. “Even at current prices the risk reward remains favourable with a low of around Rs 5,300. Rs 5,500-5,580 is the achievable level for this stock. Once the Nifty breakout happens, there is a very good chance, Bajaj Finance goes into a new territory where we may see Rs 5,800 being tested on the stock,” he pointed out.
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