In this chat with ET Markets, he shares 3 ideas for the week – NALCO, IIFL and Oberoi Realty. Edited excerpts from a chat:
After last week’s 1% gain, what’s the likelihood of the market maintaining the momentum on the upside after consolidating in the previous two weeks?
Historically, rallies followed by consolidation phases often lead to upward breakouts, and we anticipate a similar outcome this time. Resistance is seen at 25,150; a breakout above this level—or even a sustained close above 25,000—could pave the way for a move towards 25,350. Again, above 25350 the index might move towards 26000 in the short term. On the downside, immediate support lies at 24,850. A breakdown below this level might dampen the ongoing rally and prompt some profit booking.Nifty Bank has been outperforming and even hit fresh record high even when Nifty is still 5% away from September peak. How would you trade the index in the week ahead?
The RBI’s bazooka move on the monetary policy front provided much-needed ammunition to Bank Nifty, leading to a breakout from over a month-long consolidation phase. Bank Nifty has finally moved above the 56,000 mark and appears poised for a directional move towards 57,700 in the short term. On the downside, 55,900 is expected to act as a crucial support. A fall below this level could trigger a return to the consolidation phase.
Friday’s rally was decisively led by rate-sensitive sectors, particularly BFSI and realty. Meanwhile, the Nifty is lagging due to lackluster performance in IT, Oil & Gas, and Auto stocks. The overall market trend is turning positive, with banking and finance emerging as clear leaders. Staying long in BFSI and realty sectors is likely to enhance profitability in the short term.
With momentum sustaining, smallcaps are outperforming. Do you see chances of some correction creeping in the near term?
I believe the outperformance of the small-cap space is likely to continue, given the strong buying interest in several small-cap stocks. However, it remains important to be selective when choosing stocks from this segment. Only those that have shown strength over the past one to three months should be considered on dips, while weaker names should be avoided. The idea is simple: buy strength, sell weakness.
Are you seeing overbought signs in Cochin Shipyard shares on the charts?
The stock has witnessed a vertical rally over the past month, gaining nearly 80% during this period. The trend remains positive, with potential for further upside in the short term. A ‘buy-on-dips’ approach appears more prudent than chasing the price at current levels. Accumulating in the ₹2,200–2,100 range could offer a good entry opportunity, with a stop-loss placed below ₹2,030. On a recovery, the stock may rise back towards ₹2,700 or higher.
Give us your top ideas of the week.
Buy NALCO around ₹188 | Target: ₹200 | Stop-loss: ₹183
The stock has moved higher following a period of consolidation on the daily timeframe, indicating renewed optimism among investors. It continues to trade above the 50-day moving average, reinforcing the bullish setup. Additionally, the RSI is in a bullish crossover, further supporting positive momentum. With the overall sentiment remaining constructive, the stock has the potential to move towards ₹200 in the short term. A long position can be considered with a stop-loss placed below ₹183.
Buy IIFL around ₹450 | Target: ₹485 | Stop-loss: ₹433
The stock has been forming a series of higher highs and higher lows and recently broke above its previous swing high on the daily chart, signaling a continuation of the uptrend. It has also moved above the 200-day moving average, which indicates a shift to a positive long-term trend. The RSI is in a bullish crossover and continues to strengthen, confirming upward momentum. A long position can be initiated with a stop-loss placed below ₹428, as the stock has the potential to reach ₹498 in the near term.
Buy OBEROIRLTY around ₹1,900 | Target: ₹2,050 | Stop-loss: ₹1,830
The stock has broken above its previous swing high, reflecting a renewed bullish sentiment. Moreover, it is trading above the 200-day moving average, indicating strength in the ongoing trend. The RSI is in a bullish crossover, further validating positive momentum. With strong price action and technical confirmation, the stock has the potential to move towards ₹2,050 in the short term. A long position can be considered with a stop-loss placed below ₹1,830.
