It was a volatile day for the market today. The Nifty fell in the later part of the trade after hitting record intraday high of 9709. The Sensex too slipped triple digits to end at the low point of the day. The sector of the day was clearly IT which ended two and half percent higher in trade. However, midcaps and Bank Nifty ended mildly in red.
Mitessh Thakkar mitesshthakkar.com said he would maintain his longs on the IT index. His Nifty IT target is 11,100 and then 11,250. Even stock specific, he likes HCL Tech, Persistent, MindTree, NIIT Technologies, Infosys. The overall momentum for the space still remains and one could see higher prices in the next few days.
However, Ashwani Gujral ashwanigujral.com says IT remains in a bear market and needs to do more because technical cannot move in isolation and so is not upbeat on the space.
The 30-share BSE Sensex was down 118.93 points at 31,190.56 while the 50-share NSE Nifty fell 37.95 points to 9,637.15.
According to Ambareesh Baliga, Independent Market Expert the buzz in IT space could be because of buyback news in couple of stocks and it could also be because the entire sector did not perform in the current bull market. People look for sectors that have not performed and start picking them, so one could see movement in IT and pharma space.
Talking about the midcap space, Rajesh Kothari AlfAccurate Advisors says one needs to have a bottom up approach and be very stock specific. The house is upbeat on private banking and NBFCs in that space and consumer plays. So, basically bullish on consumer and housing as a theme.
The Met department today upgraded its monsoon forecast to 98 percent from 96 percent. It said the monsoon will cover major parts of India by June end.
Kothari says it is good news that overall rainfall will be good. Second consecutive year of good monsoon will result in better farm income, which could lead to better purchasing power in rural, he says.
Meanwhile, Baliga is happy that the rainfall forecast is good but warns that one must also keep an eye on error bar which is between 4-9 percent.
S P Tulsian sptulsian.com also shared his stock specific views.
For the entire discussion, watch video
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