I believe that we are not getting as greedy as how the markets have panned out because the data points across the globe are getting into favourable zones for our markets.
We saw two textures of the market this week; the first half of this week was more ruled by the index moves where we saw the second rung of stocks perform well.
For example, the untraditional names like the Nifty IT Index have managed to see a good rally. Also, the PSU banking stocks outperformed the private sector banks in the first half. But in the second half and specifically on Friday we saw the comeback of large cap names like HDFC,
, which were a bit sideways or tepid performers in the first half.
So these two faced price action moves on the market internals suggest that we should be in for a further up move. There have been sector churns, stock specific churns within the sectors as well so a lot of positives to take away from the market this week.
And the most important aspect was one of the big resistances which was around 16600 to 16700 zones which we have managed to scale past.
FIIs turning buyers over the last two or three trading sessions is also a big positive for the markets as when FII buying comes back the market gets a lot of momentum. So assuming if the global markets are stable enough we should be looking out for 17K possibly in the next week.
What are the picks that you have for the next week?
I have two buy names; the first one is AB Capital. The stock has done reasonably well on Thursday and Friday even though the price trends have just emerged from a corrective phase.
I believe that the potential is much higher for the stock over the near term so Rs 110 could be a target which one could look out for the next week and the stop loss could be kept at Rs 100.
Angel One is one of the stocks which had done reasonably well in the second half of 2021 and then the stock fell into a corrective phase more or less in line with the midcap theme.
But now it is making a strong comeback. The stock has broken past above 200 day moving averages and it has witnessed a strong comeback in terms of volumes as well. So I am expecting this stock to do pretty well. Rs 1500 can be kept as the near term targets and the stop loss can be kept at Rs 1400.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)