Stay with banks in Samvat 2079; BOB and SBI are likely to witness extended up move: Rupak De

"After the recent breakout in the Bank Nifty, the banking space is looking highly attractive. Over the medium term, the banking stocks will likely remain the darling of the stock market," says Rupak De, Senior Technical Analyst at LKP Securities.

In an interview with ETMarkets, De, said: “Stocks like BOB and SBI are likely to witness extended up move over the short to medium term. Apart from that, ITC, BHEL, and CONCOR are also looking great buy after a decent breakout on the daily timeframe” Edited excerpts:

What a week it was for Indian markets ahead of Diwali. Benchmark indices rose more than 2% in the week gone by. What led to the price action?
The week had gone pretty well for Indian equity where the benchmark Nifty gained ~2.27% over the week. Heavyweights like RIL, ICICI Bank, Axis Bank, and SBI led the rally from the front, taking Nifty above 50 exponential moving averages (current read 17290).

The index has risen above the previous consolidation high, which points towards an expanding bullishness.

We are in a truncated week. Where do you see Nifty heading in the coming week?
The sentiment from here is looking positive, which may take the Nifty towards 17700 and higher. The immediate resistance is visible at 17700, above which the Nifty may extend its rally towards 18100 over the short term.

On the lower end, crucial support is placed at 17400 and 17250.

In terms of sectors, banks, PSU stocks rose more than 3%. What led to the price action?
During the week, banks and the PSU pack remained at the helm. The decent numbers from IndusInd Bank, Axis Bank, HDFC Bank, Federal Bank, and Canara Bank instilled massive optimism in the banking space, leading to blazing rally in the banking stocks.

The Bank Nifty gained 3.76% over the week while Nifty PSU Bank Index gained about 11%.

Stocks like BHEL and CONCOR also remained on investors’ buy lists during the week.

What are your top picks for Samvat 2079 in short term (3-4 weeks)?
After the recent breakout in the Bank Nifty, the banking space is looking highly attractive. Over the medium term, banking stocks will likely remain the darling of the stock market.

Stocks like BOB and SBI are likely to witness extended up move over the short to medium term. Apart from that, ITC, BHEL and CONCOR are also looking great buy after a decent breakout on the daily timeframe.

What is your take on the rupee? Do you see further weakness in the coming week?
The weakness in the rupee (against the USD) may continue as long as it remains more than 81 INR a dollar. A fall below 81 in USDINR may induce recovery in the rupee.

On the other hand, the fall in the rupee may get arrested once RBI starts matching the rate hikes by Fed.

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