Why This Analyst Avoids Being Long On The Markets
India's benchmark stock indices ended higher for the fourth session on Wednesday.
Indian stock markets may witness an “extreme short-term outperformance," according to Jai Bala, founder and chief market technician at Cashthechaos. As a result, he is either avoiding being long on the markets or being very specific on the longs.
The analyst is positive on Torrent Pharmaceuticals Ltd., Navin Fluorine International Ltd., and Rajesh Exports Ltd., but bearish on PI Industries Ltd.
"Technically, the Nifty/Sensex has hovered between 22,350/73,700 and 22,475/74,100 for the last two days. However, the market's short-term texture is still favourable," Shrikant Chouhan, head of equity research at Kotak Securities, told NDTV Profit.
"We believe that if the Nifty/Sensex slips below 22,350/73,700, we could see one quick intraday correction to 22,230-22,200/73,400-73200," he said.
"On the flip side, 22,475/74,100 would be the immediate breakout level for the bulls. Above which, the market could move up to 22,600–22,675/74,500–74,700. The current market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders," Chouhan said.
India's benchmark stock indices ended higher for the fourth session on Wednesday. The NSE Nifty 50 ended 34.40 points or 0.15% higher at 22,402.40, and the S&P BSE Sensex gained 114.48 points or 0.16% to close at 73,852.94.
On Metal Stocks
“I'm advocating buying metal stocks from Covid-19 time,” Vijay Chopra, managing director and chief executive officer at Enoch Ventures, said.
Chopra said copper might see a huge upside and could be the next gold. A small correction may be expected, but for the long term, metal companies should do well, he said.
He said Hindalco Industries Ltd., Vedanta Ltd., National Aluminium Co., and Hindustan Copper Ltd. should be bought during a correction with a five-year perspective in mind.
However, as of now, Chopra said he would stay away from metals amid the steep run-up seen in them.
He recommended investors buy IT stocks and specific FMCG stocks such as Tata Consultancy Services Ltd., HCL Technologies Ltd., Hindustan Unilever Ltd. and Tata Elxsi Ltd. Among the lenders, he recommended Kotak Mahindra Bank Ltd. and HDFC Bank Ltd.
On the other hand, Bala said metal stocks could experience short-term upside. But this is coming close to a cycle top, which may coincide with the euphoria in copper, he said. “Copper has very little upside left. There is a low probability that it can scale to an all-time high."
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.