Mahindra & Mahindra, and TVS Motor Company are likely to generate significant alpha compared to the broader markets, though there may be some more consolidation on cards, said Milan Vaishnav, CMT, MSTA, founder of Gemstone Equity Research & Advisory Services in an interview to Moneycontrol.
According to him, M&M is under multi-month consolidation and looks poised for a breakout, and so is TVS Motor which is consolidating after a trending move and looks to resume its upward journey.
In HDFC AMC, "as of now, some minor corrective retracements may happen, but the broader primary uptrend in the stock stays intact," he said.
Do you see a strong rebound potential for the Nifty 50 in the coming week, after three weeks of consistent weakness?
The Nifty has ended in the red for the third week in a row. What is important in the coming week is the ability of the Nifty to stay above the 25,000-25,150 zone. This was the zone that was acting as a resistance earlier when the Nifty consolidated between 24,500 and 25,150. If we continue to stay below 25,000 levels, the Nifty will continue staying inside the 500-point trading range.
Do you think the Bank Nifty will hold the 56,000 support level next week, based on chart patterns and technical indicators?
No, I expect that this level may get violated. However, once again, the Bank Nifty is just 283 points above this level as per Friday's close. This is a negligible margin. The correct range for Nifty Bank for the coming week would be 57,500 on the higher side where it is likely to find resistance and 55,000 where there is immediate pattern support.
Which two stocks are on your radar for next week?
Two stocks that will be on my radar are Mahindra and Mahindra, and TVS Motor Company.
M&M is under multi-month consolidation and looks poised for a breakout, and so is TVS Motor which is consolidating after a trending move and looks to resume its upward journey. There may be some more consolidation on cards but overall, both these stocks are likely to generate significant alpha compared to the broader markets.
Are the charts suggesting a potential breakout in Bajaj Finance soon?
Yes, the charts for Bajaj Finance show stock consolidating while keeping its primary uptrend intact. Any move above Rs 980 will lead to a breakout.
Do you observe the formation of a Flag and Pole pattern on the Nifty Auto index weekly chart? Is a breakout imminent?
No, there is no such formation. In fact, the Auto Index is consolidating after reversing its multi-month downtrend. Presently, it is consolidating just above its 200-DMA following a golden crossover.
Is HDFC Asset Management Company looking overbought, or does it still have more upside potential?
Yes, HDFC AMC is overbought; however, it has not shown any signs of reversal. So, we have to stay with the trend unless it is about to reverse, and such reversal signs are seen. At best, as of now, some minor corrective retracements may happen, but the broader primary uptrend in HDFC AMC stays intact.
Disclaimer: The views and investment tips expressed by investment 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.
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