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Weekly dossier: Andrew Holland, Nischal Maheshwari, Nilesh Shah and others on market trends

Anu Jain of IIFl believes the high of about 13,150 is going to be challenging for some more time.

November 28, 2020 / 07:19 PM IST

The month of November 2020 will go down in history as one of the best as the benchmark indices posted their best monthly return since April 2020.

The S&P BSE Sensex rose 11.4 percent while the Nifty50 rallied by 11.39 percent but the big action was seen in the broader market space.

The S&P BSE Midcap index rose 13.49 percent while the S&P BSE Smallcap index was up 13.3 percent in November.

Amid the stellar gains, we have been witnessing signs of consolidation too; so, how to trade in such a market?

Top voices express their views on market trends and pockets of opportunities. Take a look:


Andrew Holland, CEO, Avendus Capital Alternate Strategies (to CNBC-TV18)

We have been focusing more on larger-caps in the Indian market. The biggest risk going into 2021 is not the growth factors; it’s whether inflation will pick up and global central banks pulling back in terms of liquidity and if they do that then it’s a risk to equity markets.

The commodity prices are likely to move up and it will bode well for metal stocks. I am also bullish on cement stocks because of the government’s focus on housing.

Nischal Maheshwari, CEO, Centrum Broking (to CNBC-TV18)

Any correction in the market is a good opportunity to buy financials.

There is a pause basically, given that there is some correction happening in the market I think these are all buying opportunities as far as financials are concerned.

There is some amount of profit taking which we are seeing, so these should be used to buy all these large banks. I believe that quality smallcap banks also should be looked at and some of the NBFCs also, but quality names.

Anu Jain, Senior Partner, IIFL Private Wealth Management (to CNBC-TV18)

We made a high of about 13,150 and that is going to be challenging for some more time. If we do cross that and we hold that, then you can have about 2-3 percent more.

The kind of action we saw yesterday and even today when the Nifty was pretty quiet or even went into negative zones, there were consistent up moves throughout the day into the midcap index which is indicative that there is strength building up there.

Given the stage of the cycle we are in, one should be positive on auto as a sector. We continue to remain positive on names like Maruti, Escorts and Eicher Motors which have found their presence in some of our portfolios. We look for a more steady-state recovery in the commercial vehicle space as well.

Nilesh Shah, Group President & Managing Director, Kotak Mahindra AMC (to CNBC-TV18)

We have been equal weight auto and within that our preference has been more towards two-wheelers and passenger vehicles rather than commercial vehicles.

We believe within the auto space it is extremely important to focus on rural recovery.

Auto stocks have risen a lot from the bottom but the real question for auto is if the demand sustainable or the rise in demand in October and November is a function of the pent-up demand.

September quarter earnings were ahead of expectations and that at 23-24 times forward earnings on the Nifty, the market was not expensive.

Arvind Sanger, Managing Partner of Geosphere Capital Management (to CNBC-TV18)

The next bull market won't be driven largely by banks as laggards like real estate, travel and entertainment players are likely to participate hereon.

I wouldn't put all my bets on the banking sector. Axis Bank, ICICI could see some rotation.

I expect healthcare, health institutions and diagnostics to remain a long-term theme.

The spending on healthcare that comes out of COVID will be permanently at a higher level and will see a higher growth trajectory.

Gautam Shah, Founder & Chief Strategist, Goldilocks Premium Research (to CNBC-TV18)

We have been working with 13,100-13,200 for this move, we are almost there. I think the markets are slightly overbought at this point in time so one has to be a little careful making fresh commitments at these levels from a shorter-term perspective.

If at all 13,200 were to get crossed you could see some more near-term strength. Going forward the next four weeks, six weeks, 12 weeks is going to be about stocks and a lot of underperformers are now making a comeback.

So, instead of really looking at the headline indices the bigger opportunity is going to be the midcaps, the small-caps, underperformers like realty stocks, chemicals stocks and they are the ones that are going to give you super-normal returns going forward.

Dipan Mehta, Director, Elixir Equities (to CNBC-TV18)

While there is a possibility of a 25-30 percent rally in public sector undertaking (PSU) stocks – as they come back to mean averages as far as their P/Es are concerned – it is not going to be a secular growth story where investors can buy and hope that the stock will double/triple over a three-four year period.

However, because of their attractiveness, you will see very strong trading rallies from time-to-time and investors who have a trading mindset will certainly look at participating in those trading rallies.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Nishant Kumar
first published: Nov 28, 2020 11:48 am
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