Correction likely over, mkt may visit upper-end of the range; upbeat on metals: Pros

Ashwani Gujral

Technical Analyst | ashwanigujral.com

• Correction likely over, mkt may visit upper-end of the range; upbeat on metals: Pros

• Buy Whirlpool, Hindalco Industries; sell Dewan Housing Finance: Ashwani Gujral

• Buy Hindustan Unilever, Ceat, Tata Steel: Ashwani Gujral

It was a positive close to the week for the market. The Nifty ended with a gain of 1 percent at 9,979 and Sensex ended with a gain of 244 points (0.8 percent) at 31,836.

Ashwani Gujral ashwanigujral.com says since 50 percent of the correction zone has been crossed, so in that sense the correction is over but the financials are still not leading the market higher, and so one can say we are in consolidation while global markets are in a bull market.

This lagging could continue because there is a limit to which IT, pharma can pitch in for banks, says Gujral. So, we would underperform the global markets but looks like correction is over and the upper-end of the range should be visited soon.

Mitessh Thakkar mitesshthakkar.com says Nifty having gone pat 9950, it should logically head towards 10,050 and if Bank Nifty gets past 24,250 then it could go to 24,500, which could see Nifty exceed the target on the upside and test 10,120. So there is around 1-1.5 percent upside left, although could happen in choppy manner.

Market expert Sudip Bandopadhyay says it looks like to a great extent market is discounting the macro worries, also the global markets have turned. There is strong expectation that decision on corporate taxation will be taken in the US, which is keeping US market buoyant, Asian markets closed well, DAX is doing well. So from a risk-off kind of mood, the global investors seem to have turned aggressive.

From Indian market perspective, if foreign investors start turning bullish and start putting in money then that would be excellent news, says Bandopadhyay. However, one will have to wait to see how corporate earnings pan out.

Bandopadhay thinks the rally seen in metals could be short-term and so would be cautious on the sapce. However, he is bullish on Tata Steel and see a 10 percent upside form current levels. He is also upbeat on the mining companies like Hindustan Zinc, NMDC and is bullish on them from a one-year timeframe.

From the gas space, he is bullish on Gail, IGL, Mahanagar Gas from one-year timeframe but a bit cautious on PowerGrid.

SP Tulsian sptulsian.com also shared his views on specific stocks.

Dipan Mehta Member BSE & NSE clearly believes one can stay invested in metal stocks for a trading bounce.