Nifty Bank could initially take a breather and marginal profit-taking would be healthy, after gaining roughly 14 percent last month, Jayant Manglik, President, Religare Broking Ltd, said in an interview with Moneycontrol’s Kshitij Anand.
Q) FY19 closed on a strong note -- any particular level you are charting for Nifty for FY20?
A) The Nifty50 gained roughly 15 percent in the last financial year and indications are in the favour of prevailing uptrend to continue.
Having said that, we may see volatile swings in between, due to upcoming general elections and lingering global issues.
Technically, it has been trading in an up trending channel on the monthly charts and that shows probable target of 12,800. In case of any correction, 9950 would continue to act as crucial support for the index.
Q) How is April likely to pan out for investors? Any particular event to watch out for in the coming week?
A) We expect the prevailing momentum to continue on the benchmark front; however, investors should brace themselves for erratic moves on the stock specific front, with the beginning of earnings season.
The next week marks the beginning of the new month also and participants would react to a list of important data and events.
On the macroeconomic front, Nikkei India Manufacturing PMI data and Nikkei India Services PMI data will be announced on April 2 and April 4, respectively.
Besides, auto sales numbers will start pouring from the beginning. Above all, they would be closely watching the outcome of the Reserve Bank of India (RBI)’s Monetary Policy Committee meeting, which is scheduled on April 4.
Q) What will be your strategy for Nifty Bank in the first week of April? Do you see some profit booking in the coming week? Also, any stocks which are looking attractive?
A) We feel that the Nifty Bank could initially take a breather and marginal profit-taking would be healthy, after gaining roughly 14 percent last month.
We advise booking some profit off the table and wait for any dip to create fresh longs. Private banking counters look more stable to us and stocks like HDFC Bank, Federal Bank, Kotak Mahindra Bank and IndusInd Bank should be preferred over others for short term buying.
Q) Any stocks which broke out of a particular pattern such as buy on MACD charts, Supertrend Indicator, etc.
A) We select our positional trades mainly on the basis of price patterns and use indicators and oscillators for confirmation.
Apart from the banking pack, stocks like Aurobindo Pharma, Infosys, Jindal Steel and Power, Page Industries, Petronet LNG, Pidilite Industries and Voltas look strong on charts and have the potential to do well in the near future.Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.