What is unstable with those low levels. What to recover recovery. And the next week will be an exciting again due to the menstrual expiry, give us a little bit that after the rally of these stars in the past few weeks, do you believe that it is time for a while to hang out for a while or that you believe that some of those benefits are to be made the next week and even today’s intraday?
Dharmash Shah: You properly said that the month of March has been very exciting for all of us after the underperformance series for the last five months. Yes, overall the market so we remain positive for the market. Let us understand that the bounce has looked back from the oversold region in the market which was the most important.
The most important two things were that the top in the Dollar Ler Index and cooling in the bond yield, it is somewhat positive for the Indian market and it already appears in the price exhibition. We believe that moving forward, again, the market should pay attention to the target of 23,700.
There is no doubt that the Nifty is a 200-day moving average, there will be 23,400 immediate resistance, but we believe that this 200-day moving average resistance will be out and we should find a 61% retracement for the last step of the fall, it should be looking for a target of 23,700. Let us understand two things, the width of the market, it is more important to find.
If you look at the width of the market, the percentage of stocks has improved significantly that we were trading above a 50-day moving average of 7% at the time of 22,000 when we were in the Nifty.
Therefore, the percentage of stocks has greatly improved, which is trading above the 50-day moving average. Also, if you take a look at the RSI, it is above 60, it is after December, we are moving above this type of RSI 60, which indicates resurrection again in the next pace. Therefore, putting everything together, the emotional indicator RSI as well as the overall market width, which is something to understand that this thing seems to be moving.
This is the point that everyone was waiting for, when you start coming to the market. Therefore, you believe that this is the right time to start buying on every dip to start shopping. But speaking about that the areas you are looking at and will you see a financial or banking pack from here on the leadership of the rally as they are clearly pushing the benchmark for the last few sessions, the Nifty Bank is doing very well and there is also a sense of evaluation.
Dharmash Shah: It is definitely, absolutely. If you look at the bank Nifty, it has seen an improvement of about 12% from the FROM Wow and even if you look at this current corrective phase, the bank is outperforming the Nifty Nifty relatively, so we believe that the Nifty should contribute 35% weight to the bank.
We expect the bank to go to the Nifty, 000 53,3 in the next few months. Maybe we can see a slight resistance in this range of 50,500 to 51,000.
But finally 52,500 to 53,000 banks are aimed at the Nifty. If you take a look at private banks that if you look at the technical setup of most of these largicap banks, look at those private banks, it seems that they can see 10% to 15% of the Sidebuilding from the current level.
Therefore, overall, banking as a field, yes, the way in which the results came out in the last quarter and expect a good number in the coming Q4 numbers are also expected to be good and therefore the banking is one of the banking where the risk-solar at the current level is more convenient. Therefore, both PSUs and private banks look positive from the current levels.
What are the stock ideas from you right now?
Dharmash Shah: Banking is yet to be picked up and Axis Bank is our top choice within the banking sector. Now, the axis, again, focuses more on the third largest bank and retail and SME with a balance sheet size of about Rs 1.5 lakh crore.
Axis Bank is one where if you look at the technical setup, the stock seems to be looking for support on the 200-week EMA and there is a strong demand for buying from the lower band of the growing channel.
Axis Bank, again, I will repeat that the better and overall banking sector should be, private banks should move relatively, where Axis can be invented around 1172, with a loss of about 974.
Except for banking, again, the metal looks more positive as space. Again, the fall in the Dollar Lur Index is always for the metal index for the metal index, and the opposite is always the opposite, with a 12% duty on the import of cheap steel, it is something big for the overall metal space.
Therefore, yes, metal, which also falls in the metal index, also see a channel breakout, again in the metal index, our top choice is left to be Tata Steel.
Again, Tata Steel, a prolonged blurring, a monthly high -tip top, high -tipped bottom formation and a falling channel breakout, it seems that Tata Steel should be discovered around 176, with a stop of 147. Therefore, Tata Steel and Axis Bank are our top choice in the current levels.
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