Gaurav Garg of CapitalVia feels the LTC and reintroducing of Special Festival advance scheme for government employees are expected to boost the consumer demand by additional Rs 36,000 crore.
As the uncertainty persists, a stock-specific approach is what one needs to follow in this market.
The surge in coronavirus infections, an acrimonious buildup to US elections and geopolitical reasons will keep volatility high that can act as a spoilsport, say experts.
The benchmark index bounced from 10,800 to current levels of 11,300 where daily Ichimoku Kijun is placed which can act as a hurdle on an immediate basis.
After showing up-move from the lows recently, the Nifty struggled to sustain the gains on September 14 and closed the day lower by 24 points amid high volatility.
Within the recovery theme, sectors like low-ticket consumer durables, cement, hotels and multiplexes are expected to do well.
Nifty50, on the weekly chart, has completed the 'Bearish Bat' harmonic pattern and is currently trading below its potential reversal zone (PRZ).
Various measure taken by the government and ‘unlocking ‘ of the economic activity has made brokerages confident of an economic recovery and they have been upgrading stocks.
The benchmark index has reached very close to the resistance of 76.4 percent Fibonacci retracement of the entire downswing seen from January 2020 top to March 2020 bottom.
Investors look at the dividend yield to ensure a certain amount of return on their investment, even if share prices remain subdued. However, not all of them are attractive
Experts point out that the rabi season ended largely on expected lines and at present, it appears the kharif crop is unlikely to be affected and may see a normal season.
The timely onset of the monsoon season from June 1 and the likely normal rainfall projects a strong outlook for the kharif sowing season, which is critical at such a challenging time.
The Nifty Auto Index has corrected by about 21 percent in the past two months, compared to an18 percent decline in the Nifty.
If we observe the daily chart, Nifty is gyrating within the boundaries of a ‘rising wedge’ pattern and we are approaching the ‘apex’ point now.
Hence every expert on the street advised buying quality stocks in a gradual manner instead of bulk purchases and waiting for the market bottom which no one has found yet in the history.
For the listed universe (around 2,500 companies), sales grew 0.7 percent YoY while profit grew 9.8 percent YoY, it said.
Prakash Gaba of prakashgaba.com recommends buying Balkrishna Industries with target at Rs 1180 and stop loss at Rs 1143 and Bharti Airtel with target at Rs 582 and stop loss at Rs 554.
A reduction in personal income tax will lead to higher consumption and will be positive for many sectors, especially autos and consumers, said experts.
Mitesh Thakkar of miteshthakkar.com advises selling ITC with a stop loss of Rs 239 and target of Rs 226.
Global markets due to Christmas break are expected to be rangebound and sideways. We can see a divergence in RSI which will be another major hindrance for the continuation of this momentum.
Ashwani Gujral of ashwanigujral.com suggests buying Bharti Airtel with a stop loss of Rs 445 and target of Rs 470.
Ashwani Gujral of ashwanigujral.com recommends buying Cholamandalam Investment with a stop loss of Rs 324, target of Rs 338 and State Bank of India with a stop loss of Rs 319, target of Rs 334.
Mitessh Thakkar of mitesshthakkar.com recommends selling Hero MotoCorp with a stoploss of Rs 2,620 and target of Rs 2,530-2,589.10 and advises buying Reliance Industries with a stoploss of Rs 1,458 and target of Rs 1,500-1,472.30.
FII remained net sellers last week as they sold equities worth Rs 1,272.41 crore.
According to CLSA, margin is unlikely to improve further with BS6 costs around the corner.