Market strategist and veteran trader Sushil Kedia is bearish on financials after the recent rally
The technical strategist warned of potential sharp drops in major financial names, including up to 30–35% declines in stocks like Kotak Mahindra Bank, HDFC Bank and Axis Bank
Indian equity benchmarks are poised to set new 2025 lows, even if tensions with Pakistan ease, according to technical strategist Sushil Kedia.
Veteran trader and investor Sushil Kedia said market behaviour seems irrational looking, at options pricing, but that does not mean stocks have bottomed out.
The PSU, railway, and defence stocks had become too fashionable. Now that they've fallen very fast, any rally or rebound is a good exit opportunity, says Sushil Kedia.
Sushil Kedia advises exiting financials and PSUs, and shifting focus to FMCG and small IT firms post-election. He highlighted sectoral rotation and emerging opportunities in media and mid-cap pharma sectors.
As per News 18 Exit Polls, the NDA coalition is expected to get around 355-370 seats with BJP accounting for around 305-315 seats. The opposition I.N.D.I.A alliance is expected to get 125-140 with Congress bagging in the range of 62 to 72 seats.
Investments in mid-cap IT stocks, have the potential to rise by 30-35%, the ace trader said.
Financials - mostly banking and a number of NBFC stocks remain the weakest among large caps, while the chemicals sector is expected to do well, said Sushil Kedia
We are cautioning our clients that there could be a possibility of Nifty50 slipping towards 11,500-10,000 which translates into a fall of 8-17% from record highs.
Benchmark indices could flirt with record highs in Samvat 2076 but there are plenty of individual stocks that will grab the spotlight in the next 1 year.
May this Diwali bring to each a renewed vigour for actively managing risk.
In an interview to CNBC-TV18, Sushil Kedia, Founder of KEDIANOMICS shared his readings and outlook on market technicals.
Sushil Kedia, President of Association of Technical Market Analysts suggests watching Shanghai Index closely as it is the China situation driving sentiments globally.
Watch the interview of Sushil Kedia of Technical Market Analysts with Reema Tendulkar and Sonia Shenoy on CNBC-TV18, in which he shared his reading and outlook on market and specific stocks.
Sushil Kedia, President of Association of Technical Market Analysts is of the view that one may Larsen and Toubro and Bharat Heavy Electricals.
The BSE Capital Goods Index has risen 18.10 percent in the past six months, compared to a 0.4 percent increase in the Sensex during this period.
Sushil Kedia, president, Association of Technical Market Analysts , believes the market downtrend is not over yet and the current upmove is merely a counter-trend correction.
Speaking on the currency space, Sushil Kedia, President of Association of Technical Market Analysts (ATMA), says he sees the rupee hitting 57 against dollar in the next 10-12 months.
Now that the correction has set in, Nifty‘s real range of trade is seen between 7600 and 9000, says Sushil Kedia, President Association of Technical Market Analysts (ATMA). He says the market is at an inflection point and warns investors from taking any position today or tomorrow.
Sushil Kedia of CIMB is of the view that Oil and Natural Gas Corporation may give 10-15 percent returns. "One may see Reliance Industries rise by Rs 300-400 if it gets past the level of Rs 900," he adds.
According to Sushil Kedia of CIMB, one may short Ranbaxy Laboratories and banking stocks like Bank of Baroda, Punjab National Bank, State Bank of India and even ICICI Bank.
The pre-election rally will continue, the euphoria will continue immediately post elections followed by a prolonged process of profit taking and correction and an initiation of a long-term bull market which will start in first or second quarter of calendar year 2015.
Sushil Kedia of Dir-Quantitative Strategy, CIMB recommends buying Cipla within the pharma space. "One may see Hindustan Unilever rebounding by 10-15 percent from the current levels," he adds.
Sushil Kedia of Director-Quantitative Strategy,CIMB is of the view that Bharat Heavy Electricals may retest Rs 100. "On a rebound that may come next week, that is where one may add positions," he adds.