As the major events are already taken care of, the Street will largely be guided by global mood, which is currently highly dependent on the coronavirus outbreak, Umesh Mehta told Moneycontrol
As the Union Budget's overhang, the Reserve Bank of India (RBI) MPC meet and major quarterly corporate results are behind us, the upcoming week could see dilly-dallying of bourses, Umesh Mehta, Head of Research, Samco Securities, said in an interview with Moneycontrol’s Kshitij Anand.
Q. What a week it has been for the Indian markets. The momentum reversed in just four trading sessions. The index has already rallied more than 3 percent, do you think the momentum is likely to continue? What were the reasons and do you think Nifty could hit 12,400 in February series?
A. It is unlikely that the momentum will continue and there are bleak chances that the Nifty will hit 12,400 levels in February series.
This is because there was no institutional delivery-based buying seen in the broader markets and frontline stocks which is a signal in a way that nobody wants to commit at higher valuations.
Further, the advantage of small and midcaps too have narrowed for any meaningful rally now and therefore post such massive volatility it is natural for markets to relax and correct.
Q. What are the important support and resistance levels to watch out for in the coming week?
A. 12,200 would be an important resistance level and 11,800 would be a key support level to watch out for Nifty in the coming week.
Q. Any important event which investors should take note off in the coming week?
A. Since the overhang of Union Budget, RBI MPC meet and major quarterly corporate results are behind us, the upcoming week could see dilly-dallying of bourses.
As the major events are already taken care of, the Street will be largely guided by the global mood which is currently highly dependent on coronavirus.
Markets will take time to sink in all the measures taken by the Government to revive the economic engine. The volatility will also subside considerably and certain pockets of stocks will experience profit booking.
Q. Top five stocks which recorded a breakout in the week gone by and are still ripe for future returns?A. Alkem Labs, Abbott India, Dabur India, Info Edge, and Solara Active Pharma are a few stocks that recorded a breakout in the week gone by and are buoyant enough to move up further in the medium term.
Q) What is your outlook on the small & midcap space that has performed in line with benchmark indices in the week gone by?A. Small and midcap stocks have aligned to their large-cap peers in the last one month and therefore will walk hand in hand with frontline stocks.
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