Kiran Jani, Head of Technical Research at Jainam Broking, said Nifty Metal is expected to go up and trade near its all-time high, which is above 6,900. “The sub-index recently faced resistance near 6,800 and slipped. A dip should be considered as an opportunity to enter. Support level could be seen around 6,500. Until the said level is broken, we should not be worried. If we go by global cues, the metal index should go up,” Jani told BT TV on Tuesday.
On the stock specific front, he picked Hindalco as the stock saw multiple bullish pattern breakouts. “It is trading above all its important moving averages. One should go long at the current market price for a target price of Rs 480, keeping a stop loss placed at Rs 454”, Jani stated.
Hindalco was last seen trading 0.84 per cent lower at Rs 460.80 today.
The market expert stated that Life Insurance Corporation of India (LIC) would be his second pick. “On the daily charts, we can see a big rounding pattern breakout. After the IPO (initial public offering), we’ve seen a drastic downfall. Currently, the stock price is trading above its long-term moving average. As the company is India’s largest insurance stock, now it is time buy this (LIC) as a portfolio stock. Investor can buy this both for short-term and long-term,” he said.
For LIC, target price would be 680 and stop loss must be placed at Rs 640, he underscored. The state-run insurer was down 1.20 per cent today at Rs 647.75.
Further, Jani also mentioned that new-age companies such as PB Fintech (Policybazaar’s parent), Paytm and Zomato are becoming a flavour of the market for now.
Meanwhile, Indian equity benchmarks traded lower in Tuesday’s trade ahead of inflation data from major economies and the Reserve Bank of India’s (RBI’s) monetary policy decision later this week.
Asian markets were subdued today. Overnight, Wall Street equities closed higher. Market participants expect consolidation in the benchmark indexes and earnings-driven, stock-specific action to continue over the next few sessions ahead of the US inflation data and RBI policy.
The Reserve Bank would announce its policy decision on Thursday. The central bank kept rates unchanged in April and June, after hiking them by 250 basis points (bps) in the fiscal 2023.
Foreign institutional investors (FIIs) turned net sellers in Indian equities for the seventh session in a row during the previous session, offloading shares worth Rs 1,893 crore, as per provisional NSE data.
Over the last seven sessions, FIIs have sold shares worth Rs 9,740 crore. In contrast, domestic institutional investors (DIIs) were net buyers in six of the past seven sessions and added Rs 1,081 crore.
Only two out of the 15 sector gauges — compiled by the National Stock Exchange — were trading in the red today. Nifty FMCG and Nifty Metal were underperforming the NSE platform by falling as much as 0.26 per cent and 0.02 per cent, respectively.
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