The government consistently focuses on development of smart cities across country, especially since they came in to power in 2014.
There has never been dearth of quality and alpha-generating stocks in the market irrespective of cycles. Hence, investors may still invest in quality stocks, said an expert
SBI Mutual Fund purchased 39 lakh shares of Crompton Greaves Consumer Electricals at Rs 212.5 per share while Nordea 1 Sicav was the seller, offloading 77,57,531 shares at Rs 212.55 per share on BSE.
The global investment bank expects returns to be driven largely by earnings with potential valuation overshoot in the near-term.
The risks to portfolio would be geopolitical tension and global recession (as there are expectations of economy slowdown in US and Europe), Edelweiss said.
We expect the Nifty earnings to grow at a CAGR of ~20 percent between FY19-21 and the economic fundamental is likely to improve further, says Sundar Muthukrishnan of Elara Capital
The stock can be bought at current levels and on dips to Rs 226 with a stop loss below Rs 215 and a target of Rs 260.
Mayuresh Joshi of Angel Broking said the year 2019 will largely be a year of stock-specific stories.
In the last one month, brokerage houses downgraded several stocks either due to weak corporate earnings, higher valuations or stock-specific news.
Almost all sectoral indices have reached the overbought zone on daily charts, indicating unfavourable risk-reward ratio in fresh longs from current levels.
Rajesh Agarwal of AUM Capital recommends buying Apollo Hospitals with stop loss at Rs 1035 and target of Rs 1110, NIIT Technologies with stop loss at Rs 1268 and target of Rs 1320 and Tata Steel with stop loss at Rs 558 and target of Rs 583.
The S&P BSE Sensex hit a fresh record high of 37,327 while Nifty50 hit a fresh record high above 11,200 at 11,253 in the morning session.
With challenges on the macro front and increasing political headwinds faced by the BJP heading into the 2019 general elections, Prabhudas Lilladher believes traders are likely to remain cautious
The Relative strength index has given positive crossover with its average on the daily chart. Thus, the stock can be bought at current levels and on dips to Rs 230 with a stop loss below Rs 220 and a target of Rs 275 levels, says Ashish Chaturmohta of Sanctum Wealth Management.
Though the Nifty managed to close above the resistance zone of 10,760-10,770, it has formed Gravestone Doji candlestick pattern on the daily chart which is a reversal pattern.
"Traders can accumulate the stock in a range of Rs 240-245 for the upside target of Rs 268 and a stop loss below Rs 225," says Shitij Gandhi of SMC Global Securities.
Rajesh Agarwal of AUM Capital recommends buying Havells India, Tata Motors and State Bank of India.
Among put options, the 10,500 strike price still has the highest open interest of nearly 60 lakh shares.
The Nifty is expected to face immediate resistance at around 10,760 and 10,790 levels and is likely to find support around 10,640 and 10,600 levels. Moreover, if the index manages to breach 10,790 levels on the closing basis, then a further rally towards 10,950 is possible.
"Traders can buy the stock around current level and add on dips around Rs 244-246 with a stop loss below Rs 234 (closing) for a target of Rs 275," says Abhishek Mondal, Research Analyst at Guiness Securities.
Divis Laboratories, Crompton Greaves Consumer Electricals, Indian Hotels, Pfizer and Bombay Dyeing could give up to 16% return in the short term
"On the weekly price chart, the scrip registered a strong bullish candlestick pattern coupled with the solid bullish pattern on last closing session, indicating a positive signal," says Dinesh Rohira, Founder & CEO at 5nance.com.
Based on Fibonacci retracement, support and resistance for the index is placed at 10,417 and 10,780 levels, respectively. With a set of important events lined up in coming weeks, coupled with earnings announcements from index constituents this week, expect heightened volatility.
Rajat Bose of rajatkbose.com recommends buying Havells India with stop loss below Rs 534 for targets of Rs 546 and Rs 553 and a buy also on Varun Beverages with stop loss below Rs 712.90 and targets are Rs 738 and Rs 750.
The index has a string of resistances placed between 10,700 and 10,800 levels which could act as a crucial resistance level in the May series. Hence, technical experts advice investors to remain stock specific as trading in benchmark indices could turn rangebound.