Nifty Bank and Financial Service sectors look attractive at the moment. Both the sectors have broken out of a long consolidation phase resuming their uptrends.
Broader markets continue to outperform the headline indices, however, the move is getting stretched and both the indices are approaching their respective pattern resistance trendlines which suggest that the uptrend may pause or enter a minor corrective phase in the coming weeks.
Agarwala of YES SECURITIES is bullish on Godrej Properties, Bata India and L&T in the shot-term
With technical indicator RSI near 80, it is time for traders to turn cautious while making fresh entries in the broader market, says Agarwala
The outperformance in the broader market space was mainly led by strong buying activity in utilities and power stocks followed by healthcare and IT names, says Agarwala.
Broader markets continue to remain resilient as the number of COVID-19 cases has started to decline leading to hopes of the economy reopening faster than expected.
Technical indicator +DI crossing -DI and RSI turning upwards suggest intermediate bullishness is intact; however, it will be important to watch if the Index sustains above 15,000 levels for an extended rally.
FIIs have become cautious on the growth which has led them to pull out some money from the emerging market like India, he said.
The auto Index had run up quite significantly and was sitting in overbought territory, a correction in the sector should be considered healthy that will make room for the next leg of the upmove, says Agarwala.
SAMVAT 2077 could be another volatile year for equity markets as the world awaits some positive news on the vaccine front. Also, keep a close watch on the rising COVID cases.
The rally in the IT stocks may take a pause, however, the pharma index has just closed above the 61.8% Fibonacci retracement level of the previous major decline indicating room for an extended rally on cards.
A sustained trade above 11,060-11,100 can trigger short-covering rally taking the Index to levels of 11,400-11,470.
A failure to sustain above 11,120 can trigger minor profit booking dragging the index lower to 11,000-10,840