India VIX moved up by 6.70 percent at 13.68 levels. VIX has gone to its highest levels in last 12 sessions amid political concern.
During the recent fall in the equity market, the fund house reduced exposure to mid-cap stocks in its Multicap Fund, but is now looking at selectively buying some of these stocks
Immediate support for the Nifty is seen around 10,800 and 10,600 levels, whereas 11,200 will act as stiff resistance, says Abhishek Mondal of Guiness Securities.
The Sensex closed higher by 196.19 points, or 0.54, to 36519.96, while the Nifty rose 71.10 points, or 0.65%, to 11008.00
Option band signifies an immediate trading range in between 10,929 to 11,080 zones, experts said.
“The Nifty has to sustain above 11,020 levels, to extend the rally towards 11,395. A breach of 10,900 on a closing basis would be sign of a bearish trend reversal,” says Vinay Rajani of HDFC Securities
Ajay Srivastava of Dimensions Corporate Financial Services said one should keep investing in bigger pharma companies as they will offer better returns going forward
“If the Nifty holds 10,929 levels, it can bounce towards 11,000-11,020 levels.For the uptrend to continue, 11,080 needs to be taken out decisively,” says Ashish Chaturmohta of Sanctum Wealth Management
Auto, cement, consumer product volumes have been impressive and is expected to aid profitability of companies
Meaningful Call writing was seen at 11,000 followed by 11,100 while Put unwinding was seen at all the immediate strike price.
Thousands of midcaps are still down by 20-40 percent from their peak, and not to forget, ‘Bhangaar’ cap is down by about 50-90 percent which is a good sign, Vijay Kedia said.
The global investment bank in its base case scenario (with 50% probability) expects Sensex to trade at 36,000 by June 2019 which is under 16x one-year forward P/E, and below historical averages.
Gaurav Ratnaparkhi of Sharekhan said if the bulls manage to cross that region then one can look at significantly higher levels
Akash Jain of Ajcon Global said after the massive destruction in midcaps and smallcaps, one can consider companies in midcaps and smallcaps space wherein FY18 earnings have been strong in sunrise sectors backed by ethical management.
Sukumar Rajah of Franklin Templeton Investment prefers companies in cyclical sectors, commodities and firms benefiting from the ease of doing business
The Bank Nifty crossed the 27,000 mark. However, it faced resistance at the previous swing high of 27,165 to end the week with a gain of 1.6 percent.
The relative strength index (RSI) is trading near 66 levels, which indicates positive momentum and support for the bullish rally
Vikas Jain of Reliance Securities said the index will find support at its 20-day moving averages placed at 10,800 levels
Chandan Taparia of Motilal Oswal Securities said the Nifty has been making higher lows from last nine trading sessions and supports are gradually shifting higher.
Our markets are doing better than the rest. Not just better, Sensex just hit a record highs while the Nifty reclaimed 11,000 levels and is just 153 points away from hitting a record high of 11,171.
As long as Nifty50 sustains above 10,900 levels one should remain optimistic and look for bigger targets beyond 11,171 by the end of this year may be close to 11,500 levels, says Mazhar Mohammad of Chartviewindia.in.
The index closed 4.30 points lower at 11,018.90 today while on the weekly basis, it rallied 2.3 percent.
Among midcaps, one needs to buy relative strength stocks which traded sideways followed by 10 percent correction, Gautam Shah of JM Financial advised.
The current trends on global macros do indicate that there will be pressure on the rupee along with other EM currencies in times to come
Experts said investors will be better off betting on stocks that are showing growth momentum and those that will benefit from the spending push by the government ahead of elections.