Talking to ET Now, Kunal Bothra , Independent Market Analyst, says next week the IT sector riding on TCS and Infosys results should do well. If BoB does well, fous will be back on the PSU banking pack as well.
How have you read into the kind of move that we have witnessed, gradually making our way to the 10700 mark? Are we likely to see this kind of a trend follow through next week as well?
The first half of last week was very tiring, very boring for the markets because Nifty more or less was stuck in a range. That range was 50-60 points on the index and for three or four trading sessions, Nifty remained in that range even though, it opened the last week higher on a positive note. We did not fill that gap on the index but nevertheless, the action was more towards stocks and there were lot of sectors which were churning pretty well.
A lot of sectors emerged as strong candidates, especially on the last trading day which was on Friday. So Bank Nifty emerged as yet another breakout with ICICI Bank leading from the front. A lot of private sector banks also came back quite strongly. Another sector that made a comeback was the IT index riding on the back of large-cap IT names.
All in all, the first half of last week was a bit slow but the action picked up in the second half of last week and that should pick up momentum for the index. In the broader sense, the index is still be on the bullish side. As a very short-term trader, if you are looking at it from four-five trading sessions, then 10500-10550 is a good enough support even on short-term charts and watch out for names, especially on the large cap names like ICICI Bank and Reliance because both of them now emerging to be fresh leaders yet again.
How are you looking at the charts of some of the result candidates? Come next week, results of HCL Tech, BOB, Zee Entertainment, will be out. Any trend that you are seeing?
For Zee Entertainment, the trend is still positive and intact. The chart patterns have been extremely bullish on all of timescales — whether you are a short-term trader or a positional trader, or even on a longer term timescale, Zee has been on an absolutely strong footing.
Given the historical price patterns, even if the stock absorbs the result volatility, the trend should still continue for Zee.
As for Bank of Baroda, PSU banks are going through a lean patch and they are struggling to hold on to rallies. So for PSU banks to show positive price trend, they have to go through a strong price breakout.
If the results are a bit in line or even if they are slightly positive or negative, I do not expect major trend reversal happening for Bank of Baroda until and unless there is a big surprise coming into the results.
If it is a positive surprise, then result reaction should trickle to most of the other PSU banks as well.
For HCL Tech, large-cap IT stocks are picking up into positive price action. TCS had a breakout last week. Infosys should also lead from the front start of next week. HCL Tech is trying to make a strong comeback about that 900 mark.
Large-cap IT space looks to be positive and the PSU banking space, especially on the back of Bank of Baroda result, if there is a positive surprise, then you could see the entire banking structure or the structure of the PSU banks changing significantly.