Q) We have entered the last week of 2020 – what are the important levels which one should watch out for?
A) This week was full of swings, as Nifty touched a low of 13,200 in a panic because of the identification of a new strain of coronavirus in the UK. It formed a long-tailed weekly candle showing that bulls are aggressive at every dip.The level of 13,500 will now act as a support level for Nifty as per options data for the monthly series. A strong technical set-up might lead Nifty to its all-time high levels.
Banking and Financial stocks might show good strength in the final week of expiry and as we come closer to the end of the calendar year 2020.Q) Do you think FII momentum will slow down as head into the New Year?
A) After 2 months of huge inflows of more than Rs 1L crores, there is a scope of some sort of slowdown in FII’s inflow in the coming month as this quantum of fund inflow is unprecedented, but I believe the trend is still intact.
FIIs might continue to pump in huge money till the time we see US bond yields getting at around 1.5-2%; the quantum may decrease. FII’s uptrend of inflows was certainly a major reason to break Nifty all-time highs.
Q) Mrs Bector listed at an attractive premium – do you think it will also see profit booking in the coming week as we saw in Burger King?
A) Mrs Bector gave close to 100% listing gains on the first day as shares debuted on the bourses today at a premium of over 73 percent. Profit booking might be witnessed as the stock has given decent returns.
Investors should try to book partial profits at higher levels and try to accumulate stock at any correction.
Q) The small & midcap indices also closed with losses. We have also seen some underperformance in the week gone by which could be partly due to profit-taking. What are your views?
A) I will call it a healthy profit booking as it is common is any bull run. Traction in broader indices might continue and investors should pick value mid and small caps having good earnings growth.
In the coming week, the Nifty might touch its all-time highs and the same could be true for broader indices.
Q) Any top 3-5 trading ideas for the next 3-4 weeks?
A) Here are three trading ideas for the next week:
Hindustan Unilever Ltd: Buy| LTP: Rs 2399| Trigger: Rs 2410| Target: Rs 2545| Stop Loss: Rs 2303| Upside 6%
The stock formed a bullish flag pattern, and if the stock somehow sustains above Rs 2410 might lead the stock to positive momentum. The stock has seen a significant addition of volumes in recent days especially in FMCG stocks.
The stock is showing strong momentum and in the coming week, stock might stretch towards life high levels.Sun Pharmaceutical Industries Ltd: Buy| LTP: Rs 589| Trigger Rs 590| Target: Rs 625| Stop Loss: Rs 570| Upside 6%
The stock has formed a bullish flag pattern, and if the stock somehow sustains above 590, it might lead the stock to positive momentum.
Pharma stock has seen significant addition of volumes especially large-cap pharma stocks in recent days. The stock is trading above its important moving averages.
ICICI Lombard General Insurance Company Ltd: Buy| LTP: Rs 1484| Trigger: Rs 1495| Target: Rs 1605| Stop Loss: Rs 1442| Upside 8%
The stock has formed a bullish flag pattern on the daily charts, and if the stock somehow sustains above 1495, and it might lead the stock to positive momentum.
The stock has been trading in a consolidation range for the last few weeks, Insurance stocks have been gaining momentum in recent days, and ICICIGI might show strong bullish movement in the next few weeks.
Disclaimer: The views and investment tips expressed by 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.