Mid-Caps Buoyant, Small And Micro-Caps In Counter-Trend Bounce, Says Analyst

Mid-cap stocks have shown more buoyancy than small and micro-caps, which are witnessing a counter-trend bounce, according to Jai Bala of CashTheChaos.

"Markets have managed to cross the 3% (growth) mark since the start of the year and every new high is getting pushed back to the previous range," the chief market technician told NDTV Profit on Thursday. "That's not a positive sign."

Bala has been avoiding the Nifty IT but is bullish on the mid-cap IT companies since 2022. "The whole IT pack has been coming under pressure (and) 36,200-mark keeps the sector weak."

Within the frontline IT names, Tata Consultancy Services Ltd. and HCL Technologies Ltd. is better that Infosys Ltd. and Wipro Ltd., according to Bala.

Bala is also bullish on LPG cylinder-maker Confidence Petroleum Ltd. with a target price of Rs 125 apiece and a stop-loss at Rs 82.

From the banking space, he pointed out that Kotak Mahindra Bank Ltd. had been a laggard for the last three years and the recent high would test the support level at Rs 1,630 apiece and stop-loss at Rs 1,820.

Most chemical makers will witness sequential recovery in the top line and bottom line and share positive commentary after results, according to Rohan Gupta, director at Nuvama Institutional Equities.

This comes after the chemical stocks being out of limelight for the last four–five quarters due to low demand, inflationary scenario in the US and Europe, global destocking and China's pressure on prices, Gupta said.

"Now it looks (like the) situation is normalising. Demand and prices are seen going up. End-user industries have started showing signs of improvement, specialty chemicals are looking better," he said.

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.