What a day in the market. I mean, what a week in the market. We have managed to scale those one-month highs in Nifty, Nifty Bank. The broader markets are looking so good and what a comeback by the smallcaps. But really, tell us, we have now managed to cross the psychological levels of 23,000. From here on, can one really be hopeful that the bulls are back in action? What are the levels that you are pencilling in as far as the benchmark indices are concerned and as far as Nifty Bank is concerned?
Rajesh Palviya: It is a super green week for the market. All sectors have closed in the green and most of the sectors have able to gain almost more than 5% throughout the week.
Nifty itself managed to gain almost around 4% for the week. Looking at the overall sectoral behaviour as well as the indices, we believe that this traction can extend further and possible rally towards 23,600, 23,800 we may witness in the coming week or in the next coming weeks for the Nifty.
As the long-shot ratio, if we look at the FIIs long-shot ratio, that has also shown some bit of short covering, so that is also adding up some bit of relief in the market. Nifty managed to cross its major call concentration area of 23,000.
Nifty able to close this week above 50-day moving average. So, these are all adding up the bullishness for the near term as well as for the short term.
And we expect that till Nifty is holding above 23,100, rally can extend to 23,600 to 23,800 on the higher side. Bank Nifty has shown very strong rally throughout the week.
The way Bank Nifty now managed to cross 50-day as well as the 100-day moving average in this week and most of the banking stocks have shown good traction in terms of buying, so we are bullish on the Bank Nifty also and we expect that this rally can extend towards 51,000 for the Bank Nifty in the coming week. So, here also we are holding bullish view with a stop loss of 50,200, target is 51,000 for the coming week.
Cannot help but notice the kind of move that we have seen over the week. You have a 4.3% uptick in Nifty. Nifty midcap is up 7.8% and smallcap has outperformed the entire market, it is up 8.7%. With this kind of move coming in over this week where the bulls have been active and in charge, do you believe that it is the smids once again that will be leading the rally from the front? Although more than a couple of analysts that we have chatted with and interacted with, all of them are recommending largecaps, but we are seeing this kind of momentum once again build up in the broader end of the market. Which sector of this market, do you believe it is going to be the benchmarks or is going to be the broader end that are going to be leading this rally, if at all we are expecting a rally for the next couple of weeks?
Rajesh Palviya: So, the way Nifty midcap as well as smallcap space have shown the strength in the current week, I think, yes, there is a possibility that midcap and smallcap can outperform further as the benchmark indices are comfortably holding above 50-day moving average, so that is giving the confidence on the street that, yes, the near term, short term structure has turned bullish.
So, when the structure turns on the bullish side for the benchmark indices, so we generally see that there is still room for midcap and smallcap at this juncture and a lot many sectors, as Mr Bagga has already mentioned about, has shown good traction like stocks from the defence, railway, even from the oil marketing company, power space.
All this space has shown very good buying interest in most of the stocks. So, it is a broad-based buying action, is likely to continue in the coming weeks, so one should stay invested at the current level for near term to short term perspective and possible rally can extend, we may see another 3% to 5% rally in midcap as well as in the smallcap space.
