Stay Long on Nifty and Quality Growth Stocks
Make or Break: Nifty 7972 is high of 2016 and if that level is breached then 8340 would be the next level to watch out for. So Nifty’s 7972 is ‘make or break’ level for both the bulls and the bears. If 7972 is not crossed by April 26, then selling pressure would be very high. What Could Investors Do: The result season has started and the market has rallied 15% from the lowest level and the season has started on a subdued note. Quality growth stocks should be in focus — Infosys, HCL Technologies, GAIL, Petronet LNG , M&M Finance, Finpipe, Supreme Industries, Kokuyo Camlin, Astral Poly Technik, Coromandel International are few stocks we like. US presidential elections and Brexit are two global events which the market won’t be able to ignore for a long time. What Is In Store? Nifty witnessed an excellent up-move during curtailed last week and gained by around 3.91%, on WoW basis. The upside breakout of key resistance with the formation of huge upside gap and long-range bull candles suggest that a sharp upside rally is underway. What Could Investors Do: Nifty is now on the way towards the next set of crucial resistance of around 7980-8000 levels by this week. A decisive up-move above 8000 could possibly open up the next upside target of 8350 in the next 4-5 weeks. One may continue with long positions in Nifty/sectors/stocks for the next one month and buy on dips. Banking, automobile, metals, realty, infra, FMCG and healthcare sectors are expected to outperform in the near term.