Trade Setup For Nov. 4: Experts Cautious On Market In Short Term But Bullish On Long-Term Outlook

The Nifty 50 rebounded, closing 0.41% higher at 24,304.35 during Samvat 2081’s special session on Friday, suggesting potential stability amid recent declines. Market experts anticipate large-cap stocks to lead gains in Q3 and Q4 as sector-specific opportunities unfold.

Time correction is anticipated for stocks in Q3 and Q4, with large-cap stocks expected to strengthen first in the upcoming quarters, according to Deven Choksey, Managing Director at DRChoksey Investment Managers. “Both these quarters will involve some amount of time correction, and within that, largecaps will likely start strengthening and gradually rising,” Choksey told NDTV Profit.

The current high-interest rate environment is expected to ease, which could boost corporate confidence and stimulate demand as government infrastructure spending ramps up, he said.

Abhay Agarwal, founder and MD of Piper Serica Advisors, maintains a cautious short-term outlook due to the cyclical downturn, suggesting that earnings projections may need downward adjustments.

“Given the cyclical slowdown, it’s hard to see what will drive the Nifty index over the next 6-12 months,” Agarwal told NDTV Profit. However, he remains bullish on India’s long-term potential, noting that new listings in high-growth sectors are emerging as attractive opportunities.

Choksey echoed this optimism for the medium to long term, especially in sectors like insurance, health, pharma, and metals, where he sees substantial growth potential. “We’re very bullish on insurance, health, and pharma, with metals also looking promising,” he noted.

"Remain cautious around high-valuation stocks, which could underperform, and in the IT sector," he said. Choksey prefers engineering R&D companies over frontline IT firms.

“The broader market holds exciting opportunities, with several newly listed companies that could become multi-baggers,” Agarwal advised.

In the commodities space, Choksey sees metals as a strong opportunity over the next 3-6 months. Within pharma, he highlights the appeal of the CDMO and API businesses, while advising caution on expensive stocks due to potential long-term underperformance.