PSBs continue to shine, metal counters may post mild gains: Manoj Dalmia

Domestic equity markets settled mildly lower this week on the back of global volatility and is likely to remain in the range of 18,000-18,400, said Manoj Dalmia, Founder and Director, Proficient Equities. He added that PSU lenders are likely to continue their momentum in the coming session. Read the edited excerpts:

Nifty50 Index settled on the muted note for the week. What were the key reasons behind this subdued performance? What are the key index levels for Nifty50 ahead of monthly Expiry?
Nifty has reached its previous high and is facing some resistance at current levels. There can be some volatility in the index due to global cues on layoffs and the constrained financial condition of companies. Expect a range of 18,000-18,400.

Nifty Bank rose about one per cent for the week. What do you expect from the banking barometer for the upcoming week considering the expiry in the coming week? What are key levels to watch out for?
Nifty Bank is at its all time high, although there is some weakness in it, the index can retrace back to 41,400 levels which might be crucial, any strong closing below 41,300 this can indicate a breakout failure and there can be selling. Range of 42,000-42,500 can be expected for the upcoming expiry.

Midcap and smallcap indices dropped up to 2 per cent for the week. Do you see the weakness to continue in the second rung stocks coming days? If someone needs to pick these counters, what are your top picks?
Slight weakness might be there in midcap and small-cap, and volatility can persist in small cap stocks. One can pick IFB Industries with a target of Rs 1,178 and Alicon Cast Alloys with a target of Rs 1,213 keep strict stop losses as per risk appetite.

PSU Bank remained at the focus of the investors during the week. Do you see more steam left in them? If a trader wants to pick among the lot, what will be your top bets?
Ans: PSU banks will continue their momentum on account of strong credit uptake. Stock picks on these sectors can be Union Bank of India, Canara Bank and Bank of Baroda.

Auto stocks were the key laggards for the week. Do you see more weakness in them? Which counters should investors avoid or pick for the near term trades?
Nifty Auto looks weak and might be volatile. Tata motors can be picked up at Rs 368 levels and Exide industries with a target of Rs 195.

Metal stocks have been in the declining mode for quite some time. Do you think the worst is over for them or is there more pain left? Do you have any metal stocks in your Recommendation’s list?
Metal stocks have seen some movement recently, there can be a 5-7% returns expected from their metal picks. Hindalco with a target of Rs 475 and Hindustan Zinc with a target of Rs 351.