Aditya Arora, Adlytick, says: “The rate hike cycle has peaked out and all the startup stocks usually gain when the rate cycle turns downside. So, we have seen good upside in Zomato and now Nykaa is following up. In a short period of time, we can see Nykaa touching Rs 185-195 and stop loss for the same should be maintained at Rs 160, so the outlook is bullish.”
The markets have been declining for the second consecutive day for the Nifty and most likely it has been led by banks and NBFCs. Going forward, how do you see the trajectory for the Nifty? We also knew that 19,850 was a strong resistance point and from that, a decline has come in. Do you still see 19,850 as a resistance for the Nifty?
19,850 is a strong resistance. We have resisted that zone almost three to four times. Markets are particularly forming inverted head and shoulder patterns from there. We are seeing a consolidation around 19,670 levels. Post the consolidation, we can take out that mark of 19,850 and from there we will have a target of 800 points. That will bring us to almost 20,500 on Nifty in one to two months. So, the outlook is pretty bullish.
Right now, the market is consolidating and digesting the gains which it has registered in the last 10 to 20 days. So, right now, the markets are pretty sideways and every dip should be used as an opportunity to buy the strong counters.
When it comes to the Nifty Bank and Nifty IT Index, bank and IT have always been a pairs trade. For the last couple of days, we are seeing some weakness when it comes to the bank index. Are you suggesting your investors buy into Nifty IT?
Nifty Bank would be a better trade compared to Nifty IT and it has been underperforming since a long time. But now, we are seeing outperformance from Nifty PSU Bank space. Soon, Nifty Private Bank will also lead because patterns of HDFC Bank and Kotak Bank are pretty strong. So, we can see a Bank Nifty rally from here. Currently, we are trading at 43,600. We can see levels of 45,000 and 46,000 in one to two months, as stop loss for the same should be maintained at 43,000 and 42,500. So, there is a long way to go and Nifty Bank can outperform from here.
I want to talk about a specific chart that is Nykaa because after that fall that we have seen coming in for Nykaa for the longest period of time, in the last couple of trading sessions, there seems to be a bit of a turnaround there. On Friday, it was up 9%. Today also, it’s trading with almost 2-3%. Gains. Is there a turnaround story actually playing out for Nykaa?
Absolutely, yes because fundamentals are changing. The rate hike cycle has peaked out and all the startup stocks usually gain when the rate cycle turns downside. So, we have seen good upside in Zomato and now Nykaa is following up. In a short period of time, we can see Nykaa touching Rs 185-195 and stop loss for the same should be maintained at Rs 160, so the outlook is bullish.
Holding companies have been buzzing in trade be it Tata Investment, BF Investment, Summit Securities or Kalyani Investment. Are there any stocks that you are looking at when it comes to holding companies?
The run-up has been pretty steep in a very short period of time. So, in the short term, probably the market may take some time to digest the gain and consolidate. But if we talk about long-term duration, like one to two years, then probably there is more upside to go. But for the short term, I would like to wait on the sidelines.
Let us talk about Goldiam International. Lab grown diamond has been picking up pace. But do you think the charts for something like Goldiam are looking interesting? Volumes are higher as well. Today, the stock is trading with strong gains as well. Anything on this one?
This looks absolutely gem of a chart and post the stellar rally from 2020, from levels of Rs 16 to almost Rs 226, this stock had gone into a slumber and was just consolidating and digesting the gains. Now, the stock is ready to hit new highs. This looks very good on the chart. This could be bought at Rs 163.20 and Rs 120 should be the stop loss and Rs 200-250 should be the target.
What are your top picks that you are looking at currently in the current market? You said every dip should be taken as a buying opportunity. So, where are you buying?
Currently, as the tone of the market is sideways, defensive stocks are outperforming and there is the traction which we can see. So, Glaxo can be bought at Rs 1640; Rs 1540 should be the stop loss and Rs 1,745 to 1,850 should be the target.
The second one, Glenmark, is again from defensive space. It can be bought at Rs 793; Rs 740 should be the stop loss and Rs 900 to 1,000 should be the target.
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