Aditya Agarwala believes that the markets are still making higher highs and higher lows, indicating that the trend has not reversed yet. However, the Nifty is facing resistance at the 21,800 level, and if the support levels of 21,600 and 21,500 are broken, there could be a longer correction. Aditya Agarwala suggests that if the Nifty slips below 21,500, it could potentially reach levels of 20,800 or even 20,500. In terms of trading ideas, Aditya recommends buying Infosys and MFSL.
“Just a word of caution before we talk about the top sectoral or thematic funds. You should only invest in these thematic and sectoral funds if you understand the sectors and the cycle of the businesses that you are investing in because these funds take exposure in specific sectors and stocks which participate during the economic turnarounds of an upturn and a downturn.”
Decoding the trend, HSBC Securities analyst Amit Sachdeva said the mid and smallcap spaces are leading the rally, which can be best described as a typical bull run.
“At current levels, one should look to go long on Mahindra & Mahindra Finance, look for a target of 315 on the upside, with a stop loss at 264 on the downside. The second stock is Piramal Enterprise, PEL. Again, as we speak, the stock is making new high but again at current levels, one can look to go long for a target of Rs 985 and if 985 is taken out.”
"Markets will continue to trade between 19850 and 19700 next week as well. Something important to note will be the Bank Nifty. Next week, we could actually see Bank Nifty outperforming Nifty. We will be surprised if 43,800 is taken out, we could be inching closer to about 44,000 on the Bank Nifty."