We would advise to buy Bank Nifty on some dips towards 21,300 for targets of 21,750-21,800.
The brokerage now expects Nifty earnings to grow at a CAGR of 16 percent over FY20-22, albeit on a low base and values the Nifty at 10,300 i.e. 1.2x PEG on FY22E EPS of Rs 543 with corresponding Sensex target placed at 34,800.
After some tough years, the pharma sector is performing well and is around 25 percent up while the broader market is down 20 percent year-to-date.
Aashish Somaiyaa of Motilal Oswal Asset Management Company advised that one should avoid panic and remain invested.
The Nifty Pharma index gained half a percent on May 7, taking gains to around 45 percent since March 23.
If VIX sustains above 50 levels, then pressure can be seen in the market. It needs to move below 40 levels for stability to return in the market.
VIX needs to move below 50 levels for some stability to return in the market, otherwise expect volatile moves to continue in the market.
Sudarshan Sukhani of s2analytics.com suggests selling Tata Motors with stop loss at Rs 153 and target of Rs 142 and Bosch with stop loss at Rs 14300 and target of Rs 13700.
Mitesh Thakkar of miteshthakkar.com recommends buying Titan Company with a stop loss of Rs 1280 for target of Rs 1340 and Infosys with a stop loss of Rs 784 for target of Rs 820.
At this juncture, Nifty is trading with a gain of 0.63 percent. Nifty Bank index has underperformed Nifty with a change of 0.09 percent so far during the week.
The market is likely to remain in consolidation mode in next week amid corporate earnings, Delhi assembly elections results and domestic data including IIP, CPI and WPI.
Ashwani Gujral of ashwanigujral.com recommends buying Chambal Fertilizers with a stop loss of Rs 175, target of Rs 190 and Muthoot Finance with a stop loss of Rs 768, target of Rs 790.
Sudarshan Sukhani of s2analytics.com recommends selling Balkrishna Industries with stop loss at Rs 1089 and target of Rs 1050 and Tata Elxsi with stop loss at Rs 955 and target of Rs 925.
Prakash Gaba of prakashgaba.com recommends buying Jubilant Foodworks with target at Rs 1620 and stop loss at Rs 1582 and SRF with target at Rs 3500 and stop loss at Rs 3380.
Ashwani Gujral of ashwanigujral.com suggests buying Bharti Airtel with a stop loss of Rs 445 and target of Rs 470.
Rising food prices have pushed retail inflation in November to a three-year high of 5.54 percent.
Sudarshan Sukhani of s2analytics.com recommends selling Havells India with stop loss at Rs 646 for target of Rs 631 and MCX India with stop loss at Rs 1125 and target of Rs 1050.
Prakash Gaba of prakashgaba.com recommends buying Federal Bank with target at Rs 90 and stop loss at Rs 85 and REC with target at Rs 148 and stop loss at Rs 138.
Sudarshan Sukhani of s2analytics.com advises buying Divis Labs with stop loss at Rs 1590 and target of Rs 1650 and Indraprastha Gas with stop loss at Rs 310 and target of Rs 325.
Deutsche's top picks are Torrent Pharma, Aurobindo Pharma and Cipla which all are buy calls.
The weekly resistance for the index is now seen at 12,021 odd levels while support is placed at 11,830-11,704 odd levels.
Early trends put NDA in a comfortable position to form the government that has, to an extent, already been factored by the market after exit polls
11,800-11,860 will act as resistance zone for the market. Crosses above 11,860 on a sustainable basis, Nifty can rally initially towards 12,000 and then 12,200.
A fresh trend in Bank Nifty can emerge only beyond 30200 on the higher side and below 29500 on the lower side.
Prakash Gaba of prakashgaba.com recommends buying Eicher Motors with target at Rs 21,500 and stop loss at Rs 20,000, United Spirits with target at Rs 555 and stop loss at Rs 532 and UltraTech Cement with target at Rs 4,200 and stop loss at Rs 4,050.