Rajesh Palviya on key market traits and buying and selling concepts for the approaching week
ET Now: What do you consider this explicit week that we’ve seen play out and what are you actually penciling in for subsequent week? Are you anticipating a correction or consolidation? What do you see occurring subsequent?
Rajesh Palviya: Wanting on the breakout on each indices, it’s clear that we’ve witnessed a robust short-covering motion on Friday, and the way in which international markets have behaved within the final couple of days, our market has additionally managed to interrupt out to a brand new all-time excessive trajectory. We consider this momentum can prolong additional. As we head into the expiry week, sectoral rotation is clear, with underperforming sectors beginning to take part. The most important contribution to this rally got here from the banking area, with Financial institution Nifty gaining round 3.75% this week. We have already seen robust short-covering motion in non-public sector banks.
If there’s a catch-up rally from PSU banks, it could present additional help to Financial institution Nifty, presumably extending its good points. We consider Nifty can proceed its upward momentum in direction of 26,000, the subsequent main name focus space. At this level, one ought to path a cease loss in direction of 25,550 to carry lengthy positions. 26,000 is the fast goal, which might be achieved within the subsequent couple of buying and selling classes. For Financial institution Nifty, this rally might prolong additional, as it’s buying and selling close to 54,000. If it crosses 54,000, the potential goal for Financial institution Nifty is 54,500 to 54,700 within the subsequent few days, as large-cap non-public sector banks present robust shopping for traction. So, we consider that so long as Financial institution Nifty holds above 53,500, the development is prone to stay bullish, and one ought to maintain on to positions because the rally may prolong additional.
ET Now: On condition that distribution channels are altering and evolving, what are you actually pencilling in with regards to efficiency?
Rajesh Palviya: The FMCG sector remained an outperformer, with most shares within the FMCG basket performing properly in the previous couple of days. Shares like Nestle, Britannia, and Dabur have carried out properly, even in a risky market over the previous few weeks, as shopping for curiosity shifted in direction of FMCG shares, resulting in breakouts in near-term consolidations. We consider the near-term construction of those shares suggests additional outperformance from the FMCG sector. Nestle and Britannia are significantly engaging, with Nestle probably extending its good points to 2800-2850, and Britannia trying promising for a rally in direction of 6500. Different promising shares on this basket embrace Colgate Palmolive and United Spirits. The FMCG sector ought to stay on the purchase checklist for the approaching week as momentum may prolong additional.
ET Now: What are you penciling in for ICICI Financial institution and the broader banking sector?
Rajesh Palviya: The non-public banking area might proceed to see upside. Most non-public banks have carried out properly, and the present week’s upward momentum in Financial institution Nifty and personal banks may proceed. ICICI Financial institution, presently at an all-time excessive, has proven a robust lengthy build-up in derivatives knowledge, indicating additional upside in direction of 1400 as we strategy expiry. Kotak Financial institution additionally appears engaging after breaking out of its earlier swing excessive, with potential targets between 1950 to 1960. Total, largecap banks within the non-public sector look promising, and we anticipate additional upside as Financial institution Nifty continues to outperform.
ET Now: What are your prime bets or buying and selling concepts for the upcoming week?
Rajesh Palviya: First, HDFC Financial institution appears promising, presently negotiating with its a number of provide zones round 1740-1745. If it crosses this degree subsequent week, we may see important short-covering with a possible goal of 1800. It’s a purchase with a cease loss at 1705. Second, Havells, benefiting from the consumption theme and buying and selling at all-time highs, exhibits robust weekly lengthy build-ups, suggesting it may prolong good points to 2100. Purchase with a cease loss at 2025. Lastly, DLF from the true property sector appears promising, having damaged out of a seven-eight-week consolidation. We anticipate additional outperformance with a possible goal of 910; it is a purchase with a cease loss at 865.
