Burger King is likely to give more than 70% gains. In my view, investors might look at booking partial gains at the time of listing and hold the stock and then buy it on any dips to keep the investment for long term, Gaurav Garg, Head Research, CapitalVia Global Research Limited said in an interview with Moneycontrol’s Kshitij Anand.
Q) Historic week for the Indian market – Nifty50 climbed above 13500 levels while the S&P BSE Sensex also climbed Mount 46K in the week. What led to the price action?
A) Optimism over the COVID-19 vaccine along with consistent institutional flow led the market to rally to record highs.
However, higher valuations creating nervousness among investors. In my opinion, Nifty still carries enough fuel which might push indices to new all-time highs.
One thing I have noticed is that this rally is not just concentrated on one sector and has seen participation from all sectors which could be an indicator of inherent strength.
Q) What should investors watch out for in the coming week? Any particular data point, and also which are the important levels for Nifty and NiftyBank?
A) 13,400 is the level to watch for which might act immediate support level for NIFTY50. However, the Nifty might show congestion at higher levels specifically the range of 13,580-13,700 to look for where profit booking might occur, but the technical set-up is still bullish.
However, Bank Nifty is still 5 percent far from its life-time high where we can expect a catch-up rally. The level of 30,000 is the immediate support to look for which is a buying opportunity at any dip.
Q) On the primary market front – Mrs Bector Food IPO will open on the 15th while Burger King which is already trading at 75% premium will get listed possibly in the coming week. Should investors subscribe to Mrs Bector, and for Burget King does it make sense to buy now or wait for a dip?
A) D-Street might like Mrs. Bector Food IPO due to its sustained business model and attractive valuations. I expect healthy gains from its listing.
As expected, Burger King is likely to give more than 70% gains. In my view, investors might look at booking partial gains at the time of listing and hold the stock and then buy it on any dips to keep the investment for the long term.
Q) More than 200 stocks on the BSE are hitting fresh 52-week highs on a regular basis. Does it make sense to chase the momentum in the small & midcap space especially those stocks which are hitting fresh 52-week highs almost on a regular basis?
A) Yes, I believe broader indices might continue to out-perform and investor should chase momentum in only selective small and midcap stocks which are hitting 52-week highs.
But, I suggest investors to book profits at regular intervals and shift their trailing stop loss in order to preserve profits.
Q) Small & midcaps underperformed in the week gone by, however, select stocks continued to attract buying. What are your view?
A) This week, broader indices consolidated, but I see this as a positive sign as sharp momentum was seen in recent weeks.
Investors should invest in value picks as momentum still persists in broader indices. An investor should keep their investment horizon longer and choose stocks accordingly.Q) What should investors do now – Sensex above 46000 while Nifty50 above 13550. Both indices have broken above crucial psychological levels in the week gone by. Can we call it a Santa Claus rally?
A) After a spectacular rally in Sensex and NIFTY50 as they hit their all-time highs, I see further strength, and indices might continue to be bullish.However, I suggest continuing to hold a long position as 12,850-13,050 is the base for NIFTY50 which should be respected; any dip is buying opportunity for traders to go long.
Q) Any top 3-5 trading ideas for the next 3-4 weeks?
A) Following 3 trading ideas for the next few weeks which might turn out to be profitable:
The stock has formed a bullish flag pattern in the daily charts, and it also broke above its immediate resistance placed at 1062.50 might lead to upside momentum.
The recent volume additions in the stock might help it to gain momentum. The stock is trading above its important moving averages.
The stock was trading in a closed range for the last few weeks, stock closed above its key resistance placed at 490. Further breaking its psychological level of 500 might push the stock into its next trading range.
The stock has bounced from its important moving average. The stock is trading in its resistance zone, and a break above this resistance might take the stock into the higher territory. The stock is showing signs of strength in RSI which is a positive sign.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.