Tips for tomorrow: Market sentiment remains bearish
On our show Tips for Tomorrow, NDTV Profit’s Ashutosh Sharma, Jitendra Panda, Head of Broking at Future Capital Securities and Lancelot D'Cunha, CEO of Sharyans Wealth Management, discussed the market performance.
India’s benchmark indices rose for the second straight day tracking gains in Asia and Europe.
The BSE Sensex ended the day with the biggest point gain since December 21. It rose over 400 points to 15,923.59 on positive global cues while NSE's Nifty index added 128.55 points to 4,765.30 levels.
IT stocks rallied for the second straight day, perhaps being helped by CLSA’s upgrade while Metal, banking and capital goods stocks were among the top gainers.
Markets also showed positive signs as India’s volatility index (VIX) stood at its lowest since December 5, falling nearly 5 per cent to 26.16. Institutional activity has picked up pace too.
On our show Tips for Tomorrow, NDTV Profit’s Ashutosh Sharma, Jitendra Panda, Head of Broking at Future Capital Securities and Lancelot D'Cunha, CEO of Sharyans Wealth Management, discussed the market performance.
Markets
Jitendra Panda felt that the Nifty faces major resistance at 4820 and added that any breakout above 4820 levels may trigger more upside movement.
Lancelot D'Cunha, on the other hand, felt that the market bounce is not sustainable as sentiment remains bearish. He said the macro headwinds persist.
Outlook on Reliance
Jitendra Panda told NDTV Profit that there are signs of short covering in RIL’s shares, which are fairly valued at current levels.
While Lancelot D'Cunha agreed that RIL is trading at fair valuations, he maintained a ‘wait and watch’ stance on RIL. “Disappointment on KG-D6 likely to weigh on RIL”, he said.
Rally in IT Pack
In the IT sector, Jitendra Panda remained overweight on Infosys at current levels said that its target price should be Rs 2,910. “I would prefer to buy Infosys shares ahead of earnings,” Panda said.
Lancelot D'Cunha, however, felt that IT stocks are already discounting the positive impact of a weaker INR; but improved business outlook may trigger fresh buying.
Financial Services
Jitendra Panda has a ‘wait and watch’ stance on rate sensitive sectors. He said that he would wait for RBI to cut rates before buying banks, which are trading at cheap valuations.
Lancelot D'Cunha said that he would prefer to buy into rate sensitive sectors, especially private bank stocks as compared to PSUs.
Auto Stocks
Jitendra Panda remains cautious on auto stocks. Lancelot D'Cunha also said that he expects growth to moderate in auto sectors with a growth in demand to taper off.
“Auto stocks are fairly valued at current levels,” he added.