The Economic Times daily newspaper is available online now.

    Dalmia Bharat Sugar, Harrisons Malayalam top value picks for this week: Anand James

    Synopsis

    The market is likely to rebound by the end of the week. Geojit Financial Services chief market strategist Anad James said that five stocks from the Nifty50 index which together weigh a little over 20% in the index, have gone below their respective lows of the day when Nifty hit its recent low. James also said that inflation readings from both India as well as the US will assume high importance.

    Anand JamesNEW-1200ETMarkets.com
    “We will open the week with a high likelihood of seeing 17,255 the recent low or 17,050 but will be glad to initiate cautious longs if above 17,500 or if slippages extend to 16,500-16,200,” says Anand James, Chief Market Strategist at Geojit Financial Services.

    In an interview with ETMarkets, James said: “Five stocks from the Nifty50 index which together weigh a little over 20% in the index, have gone below their respective lows of the day when Nifty hit its recent low,” Edited excerpts:


    What a week for Indian markets as bears took control pushing the Nifty50 below 200-DMA on Friday. What led to the price action?
    Given NFP data as well as Fed testimony risk appetite was low anyway, especially with several rate decisions also scheduled shortly.

    Unlock Leadership Excellence with a Range of CXO Courses

    Offering CollegeCourseWebsite
    IIM LucknowIIML Chief Operations Officer ProgrammeVisit
    Indian School of BusinessISB Chief Digital OfficerVisit
    Indian School of BusinessISB Chief Technology OfficerVisit
    But it was the unraveling of SVB that exacerbated the negative vibes, that led Nifty to fall back below key levels, including the 200-DMA on Friday.

    Where is the market headed in the coming week? What does a breach of 200-DMA mean for traders/investors? Important levels to watch out for –
    If the rejection trades that rushed in on approach to 17,800 diffused the upside momentum, the fall back below 17,500 has given the rein back to the bears, which the bulls had so painstakingly wrested after a weeklong duel.

    Sectors apart from capital goods, industrials, infra, and FMCG have gone below key moving averages, suggesting that the rot is spreading.

    Moreover, five stocks from the Nifty50 index which together weigh a little over 20% in the index, have gone below their respective lows of the day when Nifty hit its recent low.

    So, will the rest 80% pull their weight to help Nifty out of the doldrums? A soft indication towards this end is Nifty had closed above its VWAP on Friday, despite all the selling. So did 71% of the stocks in the F&O segment.

    Nevertheless, we will open the week with a high likelihood of seeing 17,255 the recent low or 17050 but will be glad to initiate cautious longs if above 17500 or if slippages extend to 16,500-16,200.

    Any particular event(s) that traders should watch out for in the coming week?
    Inflation readings from both India as well as the US will assume high importance next week. However, given the fact that it was the SVB fallout that gave bears the fuel, any bailout packages or measures that could signal that this event is not systemic will be taken in positively.

    Is it a buy on the dips market or sell-on a rally?
    Given the fact that recent dips have not been sharp enough, the setup has not yet shaken off the sell-on rally mode that the market has been on since November 2022.

    In terms of sectors Utilities, Power led the rally – what led to the price action?
    The Adani groups stocks like Adani Green, Adani Transmission, and Adani Power, which form 55% of the BSE Utilities sector and 27% in the BSE Power sector, gained an average of 18% this week driving the indices higher.

    The Adani Group had, early this week, announced the prepayment of share-backed loans worth Rs 7,374 crore ahead of its maturity in April 2025 which triggered the upside in the group stocks.

    Realty stocks fell the most – what is worrying the sector?
    Profit booking seen in heavyweight stock Lodha, which saw over 50% gain last week, and on concerns related to the expectation of aggressive rate hikes by global central banks.

    However, the NSE Realty index is closing in on the key Fibonacci retracement level and as the average downside seen by stocks in the index barring Lodha is just 2.7% which is showing the underlying strength in the index.

    Any stocks which are looking for a value pick at current levels after the recent fall?
    Here are few trading ideas for the next 3-4 weeks:

    Dalmia Bharat Sugar: Buy| LTP Rs 355| Entry range: 347 - 355| Target Rs 374 - 390| Stop Loss Rs 334

    The stock has been moving within a downwards-sloping trend channel breaching the upper trendline resistance recently and has managed to close above it, indicating bullishness.

    Also, the MACD has broken above the signal line in the daily time frame favoring our view of a bounce back in the near term.

    We expect the stock to move towards 374 initially and thereafter towards 390 in the next two to three weeks. All longs may be protected with a stop loss placed below 334 levels.

    Harrisons Malayalam Ltd: Buy| LTP Rs 124| Target Rs 134 - 146| Stop Loss Rs 116

    The stock has been on a decline since the latter part of 2021 and is currently witnessing a pullback from near the 61.8% Fibonacci retracement level of 120.

    Also, the MACD forest has shown signs of exhaustion at lower levels indicating a pullback in the near term.

    We expect the stock to pull back initially towards 134 and thereafter towards 146 in the next two to three weeks. All longs may be protected with a stop loss placed below 116.

    (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in