Shivangi Sarda, a Manager Research Analyst at Motilal Oswal Financial Services, reports notable performances in the stock market. According to Sarda, Maruti has emerged as the top gainer with substantial buying interest. This stock has moved positively after a five-month consolidation, with the next target set at Rs 13,800 and support at Rs 13,000. Trent is also highlighted, with its correlation to positive movement in the retail sector ahead of the festive season, aiming for targets of Rs 8,100 and supported at Rs 7,630.
In recent days, the market experienced a retracement after reaching a peak of 26,000. Currently closing at around 26,100, Sarda notes the sustained bullish activity over the past few sessions. The improved and sustained put-call ratio at about 1.3 levels indicates a comfortable base for put writers. Despite being the monthly expiry day, the reduction in put premiums supports the bullish stance. Sarda expects the index to reach 26,200 and potentially 26,350, with crucial support at the 25,900 level.
The Bank Nifty index has been the primary driver of the rally over the past two weeks, outperforming with significant contributions from heavyweights. Sarda expects the index to continue its upward trajectory, aiming for 55,000, with support at 54,000. She notes visible follow-through in both indices and recommends a strategy of buying on declines, coupled with stock-specific actions.
Discussing the metal sector, Sarda attributes the ongoing interest to stimulus measures from China, which have benefited commodity stocks. Specifically, Nalco shows early signs of positive bias, along with other stocks such as Tata Steel and JSW Steel, which are performing well. Nalco’s next target is set at Rs 210, supported by positive rollovers.
In the IT and pharma sectors, Sarda mentions that despite impacts from US elections, the heavyweights like Infosys and Wipro are showing strength. Midcap stocks, however, do not currently indicate signs of reversal. She suggests focusing on heavyweights in these sectors.
Regarding the banking sector, Sarda highlights the strength in heavyweight stocks, specifically pointing out Axis Bank and ICICI Bank. She notes that PSU banks have shown momentum around budget times but are currently facing some distribution. Emphasis is placed on ICICI Bank, projecting a positional target of Rs 1,400 for the October series.
In conclusion, Sarda reiterates the bullish sentiment in the auto pack, with Maruti as the top performer showing strong buying interest and positive RSI divergence. She forecasts continued upward movement for Maruti and Trent, projecting respective targets and support levels carefully.
