Nifty won't go down in a hurry as there are plethora of supports, says VK Sharma of HDFC Securities. He does not think 8450 will be broken at all. However, he adds that 8650 is a good resistance.
Also, according to him, if the non-farm payrolls coming in a tad weak, US Federal Reserve rate hike will happen only in December.
As far as Bank Nifty is concerned, he sees strong resistance at 19100. If it goes beyond that, buy Bank Nifty. He advises investors to buy Kotak Mahindra Bank if one wishes to get more than Bank Nifty.
He is also bullish on public sector (PSU) banks, primarily because the government is going to infuse capital. Second, some of them are going to get private sector honchos as well. So, from that perspective, overall their net positions are still on the short covering side, he told CNBC-TV18.
Sharma says healthcare is another sector that has done well. He likes Apollo Hospitals in the space.
Deven Choksey of KR Choksey Shares and Securities says the market internals are such that there was a sustained rally in the midcap space. "Now it wants to create a breathing space. Some of them, I feel have even completed part of their run. Valuations have scaled up ahead of time in some cases," he told CNBC-TV18.
On the other hand, largecap companies have remained silent, says Choksey. There is a possibility that largecap companies may start participating now. HUL, Reliance are some of the companies that can start participating in the largecap buying activity, adds Choksey. He is relatively more positive on largecaps. According to him, if 8650 is crossed, then Nifty will see 8750-8950 being crossed. Or support will stay at 8450, he adds.In the capital goods space, Choksey advises investors to remain cautious though the companies are doing better now. However, if one still wants to buy and accumulate, then maybe at lower levels one can consider.Both Choksey and Sharma also spoke about a whole host of other stocks.Watch videos for more...
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