The markets were choppy owing to the global sentiment; however, the market is overall in a bullish tone. In a nutshell, until, we are holding above 17400-17500 levels on the Nifty50, we are in a positive trend, Ashish Chaturmohta, Director Research, Sanctum Wealth – said in an interview with Zeebiz’s Kshitij Anand. Edited excerpts:
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Q) A volatile week for Indian markets but bulls managed to hold the fort. What are your views on markets and key levels to watch out for in the coming week?
A) The markets were choppy owing to the global sentiment; however, the market is overall in a bullish tone. The Nifty50 is holding stable, and I expect banking to outperform.
The Reserve Bank of India’s (RBI) decision to keep the rates unchanged is also a positive one. In a nutshell, until, we are holding above 17400-17500 levels on the Nifty50, we are in a positive trend.
Q) Do you think fresh record highs are possible in the October series especially after the RBI policy meeting outcome which promised liquidity and at the same time maintaining the accommodative stance?
A) Banking as a sector will outperform the overall market. We have seen in the past few months, that the government has been very active in taking decisions relating to stressed assets like the sale of Air India to Tata, Sale of Jet airways etc., thereby strengthening banks’ balance sheet.
Additionally, RBI’s commentary was seconding the same, by ensuring liquidity in the markets. Hence, we can see banking as a sector outperforming the markets.
Q) What is your call on TCS post September quarter results?
A) TCS reported strong numbers but missed Street estimates. The management outlook remains strong, and prospects also remain very strong.
The management also mentioned on the call, that the tailwinds are here to stay for a long period of time. TCS generated high free cash flow conversion and remain one of the top picks in the large caps
Q) Sectorally, IT, Auto & Consumer Durable stocks lead the rally. What led to the price action?
A) IT as a sector is having tailwind left right and center, hence the next few years earning growth can be phenomenal.
The rally in Consumer durables, auto etc was witnessed owing to the festive season. Mahindra and Mahindra rallied, owing to the phenomenal booking from XUV700 within minutes.
Q) Broader markets slightly outperformed the benchmark indices. What is your view on the small & midcap stocks? Especially the ones that are hitting fresh 52-week highs daily.
A) Small and mid-caps will outperform large caps taking a long horizon. Quality small and mid-caps will continue to do well, and one should adopt a buy on dips and hold approach.
There are various stocks hitting 52 weeks high every day as earning moment expectations are higher than the streets and the prospect of which is here to stay.
Q) Your top 3-5 trading ideas for the next 3-4 weeks?
A) Naukri, Tata Steel, LTTS, and SRF would be top trading ideas.
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)