Markets May See Near-Term Consolidation Despite Positive Long-Term Trend, Says Analyst
Improvement in market sentiment over the past week suggests that market expectations surrounding the ongoing Lok Sabha elections have steadied, say analysts.
The long-term trend of equity markets looks positive, but they may witness consolidation in the near-term, according to Aamar Deo Singh, head advisory at Angel One Ltd.
Singh is “cautiously bullish” on the markets, he said. Many small, mid, and large-cap companies have performed well; and heavy weights such as Axis Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., HDFC Bank Ltd. and Kotak Mahindra Bank Ltd. have contributed, he said.
The NSE Nifty 50 has come out of an important resistance zone of 22,700/800, Singh said. It is important for the index to sustain above these levels for the next leg of rally, according to him.
Investors should be cautious as the India VIX has seen an increase, Singh said. His stock picks are Voltas Ltd. and Finolex Industries Ltd.
On Friday, the NSE Nifty 50 settled 10.55 points, or 0.05%, lower at 22,957.10, and the S&P BSE Sensex ended 7.65 points, or 0.010%, down at 75,410.39.
Intraday, the Nifty rose 0.23% to a record high of 23,026.40, and the Sensex gained 0.29% to a fresh high of 75,636.50. However, by end of trade, the Nifty snapped a six-day winning streak on Friday, while Sensex reversed a two-day gain.
The week-ended May 24 marked the best week for the Nifty in over three months.
Improvement in market sentiment over the past week suggests that market expectations surrounding the ongoing Lok Sabha elections have steadied, said Shrikant Chouhan, head of equity research at Kotak Securities Ltd.
Better-than-expected fourth quarter earnings in some key pockets supported momentum, according to him.
Adani Group companies have seen a run-up, said Vijay Chopra, managing director at Enoch Ventures Pvt. He is positive on Adani Ports and Special Economic Zone Ltd. and Adani Wilmar Ltd., given their potential in the logistics and consumption space, respectively. Long-term investors can see an opportunity, he said.
"Even after the fall (post-Hindenburg), I was recommending the stock because it has wonderful assets, the business model is fantastic and for growing business, you need ports. The group has ports on both east and west coast. One should definitely latch on it whenever there is a correction. It is a potential multibagger," he said.
Adani Wilmar is also a homegrown consumption story, he said. "They have a lot of FMCG goods. The stock should be ready to shoot up and it has been consolidating near Rs 350."
Disclaimer: NDTV Profit is a subsidiary of AMG Media Networks Limited, an Adani Group Company.
Watch The Full Conversation Here:
The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
