Bank Nifty traded with a positive bias through the last week and managed to give third consecutive higher weekly closing.
Experts point out select mid and smallcaps look good for medium to long term horizon. They name about 20 favourite stocks
Prime Minister, Narendra Modi said the package will focus on four factors - Liquidity, Land, Labour and Laws.
Bank Nifty has been a laggard in the current up move and it should witness a strong up move as it has crossed its 20-day short term average after two months.
Federal Bank has identified new revenue streams such as micro finance, credit card, CV/CE and business banking for margin expansion.
With an improvement in sentiment along with the earnings, the outlook for the mid and smallcaps looks positive, says Pankaj Bobade of Axis Securities.
The prevailing consolidation to extend further and Nifty to hover within 12,100-12,400 zone.
Lower interest rates and good monsoon are expected to help the economy. Also, positive developments in the global arena for the US-China trade deal and the Brexit resolution will provide additional support
Prakash Gaba of prakashgaba.com recommends buying Federal Bank with target at Rs 90 and stop loss at Rs 85 and REC with target at Rs 148 and stop loss at Rs 138.
FII remained net buyers in the last week as they bought equities worth Rs 3213.17 crore, while Domestic Institutional Investors (DII) also bought equities worth of Rs 2184.81 crore.
Joseph Thomas, Head Research - Emkay Wealth Management, also told Moneycontrol that after the recent fall in the market, the midcaps and smallcaps are a good option.
Prakash Gaba of prakashgaba.com recommends buying Sun Pharma with target at Rs 455 and stop loss at Rs 435.
But not all earnings are bad in June quarter, there are few stocks which brokerages upgraded their rating either on hope of further growth or worth seems to have priced in.
Despite the big names disappointing traders, there are stocks that have encouraged brokerages to raise target price on them
Nifty has formed opening bearish Marubozu candlestick pattern on the weekly timeframe that implies bearish sentiment. This month's pivot point is placed around 11,839 and S1 level is around 11,574
If the bullish pattern does not hold, key support levels are 5-week EMA placed around 11,760 and 20-DMA placed at 11,650
Top upgrades for FY20E includes names like UPL, State Bank of India, Tata Motors and Tata Steel have seen EPS upgrades of 32.4 percent, 23.3 percent, and 9.3 percent respectively.
Atish Matlawala of SSJ Finance & Securities said that rate cut will benefit banks as they will be able to bring down the cost of funds and pass on the benefit to the borrowers
Finance, FMCG and auto companies suffered from volume growth and delivered disappointing results.
Morgan Stanley maintained its Equal Weight rating on Federal Bank post March quarter results with a target price of Rs 95 while Citigroup maintained its neutral rating on Federal Bank and raised its target price to Rs 110 from Rs 90 earlier
Around 134 out of 776 smallcap stocks closed in the green and out of which top 10 stocks rallied between 8 percent and 33 percent
If 11,785 trade on a higher side decisively then we can expect the uptrend to resume once again till 12,000 levels, which is a short term target as per Fibonacci projection.
Investors’ focus should be on stocks that are fundamentally sound, are displaying earnings momentum, have a margin of safety and good corporate governance standards
Overall, especially after the run in November, the market has been rangebound and stock-specific action has continued, which is likely to be the top theme in the rest of 2019 as well
Elara said NBFCs are expected to bear the brunt of tightening liquidity, down 18.6 percent YoY, whereas banks would benefit, up 69 percent YoY, due to improving credit deposit ratios and improvement in pricing power, given the stress in the NBFC space.