Firstly, onto the index, where do you see the Nifty as well as Bank Nifty headed because markets are clearly not able to sustain those higher levels and we are seeing that selling pressure coming once again from 24,500 level, while for the Nifty Bank as well though it had all the flavour for the markets, but for the past three to four trading sessions even that steam is seen to be losing. Where are we headed from these levels?
Amit Bhuptani: So, overall if we look at the setup on the Nifty front, it is clearly visible that Nifty is managing to take the resistance near 24,400 to 24,500 range where we are seeing that the major call writer is also getting added up sharply between 24,500 and 24,400 range.
The only concerning part which we are witnessing right now and the uncertainty part is India Vix. India vix is continuously trading above 18 levels from last three to four days which is the concerning part.
Till the time India VIX is not coming below 14.5 level, till that point of time we will witness the volatility up front in the market. Currently, the weekly closing is very much important for the Nifty to go above 24,500 level. Once the 24,500 level get the clearance above that level, then we will see the next leg of buying towards the 25,100 level.
Currently, we are also seeing that the Fibonacci golden ratio is also coming near 24,400 level. So, closing once Nifty gets above that level on the spot basis, after that we will witness some stable buying in the market.
So, overall view on my front as in today’s session we are witnessing that the overall market we are witnessing that the selling has been witnessed.
So, if we need to create any new long positions, once again if Nifty goes above 24,450 level in next one to two day of trading session, then only new long position need to be created. At this point of time once Nifty on the intraday front gets broken out below 24,350 level, then new short position can be created.
So, market are taking a breather before we can start moving up, but in this next leg up, next leg of rally which sectors do you see leading from the front because in the previous rally we did see the banks and the financial names leading from the front, in the next leg up which sectors do you see forefront?
Amit Bhuptani: Overall, if we look at the sectoral basis, two sector which I am thinking can show a good performance while going ahead, one will be the Nifty IT.
Overall IT pack seem to be on the positive front as I am witnessing that the major selling has been taken out in this overall sector and I am expecting buying can be witnessed while going ahead.
If you look at the overall Nifty IT pack, the breakout for this index is above 36,700 level. Once 36,700 level gets a clearance, then we will see that the outperformance will be witnessed from the Nifty IT pack.
So, buy on dip strategy need to be maintained in the overall IT pack and selective counter will be Tech Mahindra and HCL Tech looks positive.
Another sector that looks positive is Nifty Auto. Overall auto pack I am expecting to show some more current in the market and more buying will be witnessed while going ahead and in today’s session also we are witnessing that the major support which we are seeing on the market front is on the Nifty auto front and if we need to select any counter, then Maruti Suzuki looks positive while going ahead.
Help us with your stock ideas.
Amit Bhuptani: So, today, there will be two recommendations. As I am saying that there will be a fluctuation in the market and volatility will be extreme in the market, till the time India VIX will not get settled out. So, we will hedge the position.
I will give one buy recommendation and one sell recommendation. Firstly, we will take the buy recommendation on the Siemens. As we are seeing that from last four to five days of trading session, the counter has managed to get stable above 50 DMA level and the decent addition of volume is also being witnessed on the downward breakout which we are clearly witnessing on the daily chart.
So, I am expecting the buying will be witnessed in this counter. The support for this counter is placed near 2880 level. So, with the support of 2880 level we will recommend a buy strategy on Siemens with a target of 3020. And the second counter will be Granules.
In Granules India we will recommend a short strategy. This counter we are seeing that from last five to six weeks continuously stock is trading into a negative trend and I am expecting more selling can be witnessed while going ahead towards the 440 to 435 levels on the downside. Currently, the future, we are seeing it is trading near 452 level.
I am expecting more selling can be witnessed on the downside towards the 440. So, we will initiate a short position on the Granules India with a target of 440, with stop loss upside at 462.