Rohit Srivastava, Founder, Indiacharts.com, says “there is room for more upside but not a runaway move. 44,800 may be the best case for Bank Nifty, for example, on the upside right now. We are not looking beyond that. That could happen post-Diwali, looking at the way the market is pausing at this level right now.”
Given that Nifty is range-bound and Nifty Bank again continues to appear to be weak, how are you looking at both the indices? Where can we find some breakout coming in both these indices?
I think above 19,450 is going to be the first hurdle that Nifty is facing. We are pretty close to that and once we get past that, we should head towards 19,700. Even in the Bank Nifty, we are very close to the 40-day average, which is at around 43,680. And above that, we can go towards maybe 43,800 or slightly higher than that also.
So there is room for more upside. Not a runaway move. 44,800 may be the best case for Bank Nifty, for example, on the upside right now. We are not looking beyond that. That should happen possibly post-Diwali, looking at the way the market is pausing at this level right now.
Momentum seems to be in favour when it comes to the pharma names and in fact, the index is also one of the top sectoral gainers, any specific stocks that you are looking at in the pharma index?
Broadly the pharma sector has underperformed for most of last year. So I think it is about time that there is some allocation. It is also that we are getting to the point where, if you see the performance of the largecaps has been waning in front of the mid and small caps and we have the overhang of a lot of global macro risks coming in. So there is this shift to defensive, which we can very apparently see now, both in FMCG and pharma.
Pharma appears like the easier play because it has underperformed for a long period and therefore value is more. And therefore, we should continue to see momentum in the pharma space. No particular stocks that I can really mention.
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