For the week, Nifty is likely to take support at 12,000, and 12,250 would be a stiff resistance level, Gaurav Garg, Head of Research at CapitalVia Global Research – Investment Advisor, said in an interview with Moneycontrol’s Kshitij Anand.
Edited excerpts:
Q) The Nifty50 saw a smart rally in the week gone by which pushed the index back above 12,100 levels in a single trading session. What is your outlook on markets?
A) A few days back there were concerns that the coronavirus might hit global growth as well as earnings in India but now it seems that the coronavirus issue is likely to get resolved.
Weak domestic data and concerns over global economic growth are affecting investor sentiment. The impact of the lowering of new coronavirus cases in China can be observed in Nifty’s rally.
Traders should keep a watch on the global markets. We’re seeing a mixed trend in the market and the focus should be on stock selection and trade management.
For the week, Nifty is likely to take support at 12,000 and 12,250 would be a stiff resistance level. Therefore, it is recommended to remain cautious on the Indian markets in the near term and keep a close watch on the movement of currency and crude oil prices.
Q) Media reports suggest that India and the US are expected to sign a $2.6 billion defence deal. Will this ring focus back to defence-related stocks?
A) The upcoming visit of the US President to India has been stimulating the markets, however, the growth has been stalled by the statement of US authorities which talks about the postponement of any trade deal with India to an unspecified future date.
The Seahawk deal is a strategic one rather than commercial and the amount involved is $2.6 billion which is not significant enough to impact the market in any way.
Also, this acquisition is direct with no involvement of any defence partner in India it is quite unlikely to create movement in any stock.
Q) What are your targets for the yellow metal for 2020? And, what should new investors do now?
A) We have placed the target for gold in 2020 at 44,000 and new investors should wait for a dip till 40,900 and initiate buying from that level. From an overall portfolio perspective, investors can allocate up to 15 percent of their funds to Gold Futures.
Any correction in gold will be a buying opportunity and might be a good diversifying asset to the portfolio.
Q) Top 3-5 stocks which are good breakout buys at current levels and why?
A) Here is a list of top three stocks which could be considered good breakout buys:
The stock is trading above its important moving averages and has a trend line breakout in its intraday charts. The stock has the potential to give around 10 percent return in the next few months.
The stock is indicating a reversal from support level in its daily charts and further momentum would lead the stock to generate good returns.
The stock has a major resistance level breakout as well as trend line breakout. The stock seems bullish for the upcoming trading sessions.
The stock has bounced back from its support level and has been trading on a positive note for the past 6 trading sessions.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
