Sun TV, MGL VIP, Deepak Nitrite, FSL key dark horses
On the lower side, 11150 followed by 11000 would now be seen as a sheet anchor.
Chief Analyst – Technical & Derivatives, Angel Broking
Where are We?
For the Nifty, last-to-last week was the 21st week as per the ‘Time Retracement’ and thus, we were hoping for some respite. Considering last week’s correction, our final hope was the recent low of 10637. Fortunately, it remained defended and with Friday’s move, the market seemed to have validated our hypothesis on ‘Time Retracement’. Now, we have finally managed to thrash the recent sturdy wall of 11200 with some authority. Although, we are considerably higher in a single day, traders should continue to remain on the long side and we expect the Nifty to soon head towards 11450–11550 or beyond.
What is in Store?
On the lower side, 11150 followed by 11000 would now be seen as a sheet anchor. Any decline (if any) should be construed as a buying opportunity. Today, almost all sectors (especially the beatendown) soared as if there is no tomorrow. One needs to identify right candidates who are likely to extend this lead. The FM has finally delivered and market has finally turned cheerful. As far as individual stocks are concerned, there would be plenty to watch out for as most of the sectors seem to have taken a complete U-turn.
What could Investors Do?
From the automobile sector, our preference would be Maruti, Tata Motors and Escorts. Banking giant HDFC Bank and Axis Bank are certainly poised for further legs. From the beaten- down metal pack, Tata Steel and Vedanta continue to attract us. For the F&O mid-cap space, Sun TV and MGL have the potential to become dark horses. And from the broader market, our inclination would be on VIP Industries, Deepak Nitrite and FSL.