A) The Nifty50 ended on a negative note this week as it witnessed selling pressure in the financial sector. Pharmaceutical companies witnessed a decent rally this week with overall weekly gains of around 8 percent.The NiftyIT gained around 5 percent during this week, and due to the lack of any fresh triggers for the market, the current uncertainty is expected to continue.
But, any news with regards to the border tensions with China/Pakistan or global events can impact the markets on the downside. Investors need to be cautious and watch for news-specific movements.
Q) What are the important levels that one should track in the coming week amid monthly F&O expiry on September 24?
A) Global cues were mostly mixed after the US Fed Reserve failed to come out with an immediate stimulus measure and also due to a resurgence in virus infections in some countries.
Markets have been trading with uncertainty and the clear lack of direction to either side was visible in this week’s trades.
If Nifty sustains above the 11500 level it is expected to test its level of 11800 by the expiry next week. The key level to be respected is 11300-11350.
Q) What is your view on the upcoming IPOs which are scheduled for the week – CAMS, Angel Broking, and Chemcon?
A) All the three IPOs are likely to get a good response from the investors and investors can subscribe to any of the IPO based on the industry of their interest.
CAMS claims to be India's largest registrar and transfer agent of mutual funds with a market share of nearly 70 percent. Besides, the company is into the verification and maintenance of KYC records of investors for use by finance institutions.
Investors can subscribe to this issue with a long term view as it holds strong fundamentals.
Angel Broking is the fourth largest broker in terms of active clients on NSE and has witnessed consistent growth in the customer base. The objective of the offer is to meet the working capital requirements and general corporate purposes. Therefore investors can subscribe to this issue.
ChemCon is India’s largest manufacturer of specialized chemicals, such as Hexamethyldisilazane / Hexamethyldisilane (HMDS) and Chloromethyl Isopropyl Carbonate (CMIC) which are predominantly used in the pharmaceuticals industry. It has a strong balance sheet with stable cash flows.
It reported an average 43 percent return on equity and a 52 percent return on capital employed in the past three years.
Q) Small & midcaps outperformed – does it looks like smart money has already started flowing in the broader market space?
A) Small and midcaps have become the new choice among investors who are willing to expand this segment in their portfolio as this segment has not reached its stagnation and a good amount of upside movement is possible, therefore this sphere is attracting a lot of investors and it can be said that considerable sums are flowing here.
Q) In terms of sectors – IT and Healthcare were the top two sectors – is it the currency factor that is adding to the tailwind?
A) Currency is not the usual factor as it is appreciating, the rise in COVID-19 cases and Seasonal factor seems to be driving pharma stocks whereas positive earnings and the additional demand of IT due to Work from home and the rapid digitization of Businesses have led to the rise of IT stocks. Few of IT major has given better growth guidance which has fueled the sector.
Q) Any 3-5 short term technical trading ideas for the next 3-4 weeks?
A) Here are three investment ideas for the next 3-4 weeks.
DLF Limited: Buy| LTP: Rs 161| Target: Rs 186.50| Stop loss: Rs 153| Upside: 15%
The stock has witnessed a reversal from its support level placed in the zone of further strength that might be gained if it sustains above 166.50.
The crossover of its short and medium-term averages on daily charts with strong volumes showing signs of further upside.
RSI has also turned positive on weekly charts, indicating limited weakness in the stock.
BBTC Limited: Buy| LTP: Rs 1393| Trigger: Rs 1430| Target: Rs 1575| Stop loss: Rs 1370| Upside: 13%
The stock has formed a reversal pattern, if stock somehow sustains above 1430 might lead to positive momentum. The stock has seen a significant addition of volumes in recent days. Risk and reward is favorable at this juncture of time.
ICICI Bank: Buy| Trigger Price: Rs 375| LTP: Rs 369| Target: Rs 392| Stop loss: Rs 360| Upside 4.5%
The stock is bouncing from its support on daily charts and breakout might result for further strength which might lead the stock to break its weekly highs.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
