Indian shares continue to meander on without a breakout on either side. Through the week, the National Stock Exchange’s 50-share Nifty closed almost flat while the smaller and mid-cap stocks out-performed the benchmark.
“The market hasn’t really done much but stock-specific, there has been a lot of action,” Gautam Vora, Director, ULJK Securities. The Nifty, he said, had immediate support at 5,220 and then at 5,180 though he said momentum was positive. “We have a target of about 5,385 within the next 1-2 weeks on the Nifty.”
Portfolio Manager PN Vijay said the market had been in a state of limbo though early earnings from IT companies and banks were “heartening”. “You could either wait for manufacturing numbers to come out or, if you are an aggressive investor, jump in to buy before the pack though people are curious to see how all this talk of higher interest rates and higher inflation pans out.”
For the little more prudent investor, there are words of caution from Jagdish Malkani, Country Head of Taib India. “The undertone is still firm with strong FII flows, a firm market, lots of action in the mid-caps, heavyweight RIL finally starting signs of movement and sector rotation. However, we could run into a foggy environment within two-three months,” he said.
Stock/sector view
Shipping stocks have been rallying of late and Bharati Shipyard has doubled in the past month. “Part of it (rally in shipping stocks) has to do with the international Baltic Dry Index rallying,” Malkani said, as it perceived to be linked with the fortunes of global shipping companies.
“However, winds have changed somewhat — Pipavav Shipyard got an order cancellation recently and I find these stocks a bit expensive,” he said.
IT stocks have been in the news too and PN Vijay said he expects especially the midcap companies to report good numbers ahead. “NIIT Technologies reported scintillating numbers. The BFSI sector in the US is recovering and IT companies are getting good client accretion.”
Source: Moneycontrol.comCourtesy moneycontrol.com
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