Nifty To Show Some Upward Momentum Going Ahead, Says Analyst
The markets were in the green today, on the back of HDFC Bank Ltd. that saw a rise of nearly 2%.
The benchmark indices on Friday reversed a four-day losing streak, but they saw the worst weekly fall in over a month amid tension between Israel and Iran. The NSE Nifty 50 and the S&P BSE Sensex declined 1.65% and 1.56%, respectively, this week, making it the worst decline since March 15. However, analysts see the recovery on Friday as an encouraging sign for bulls to come back and expect the Nifty to show some upward trend in the coming week.
"I am expecting the pattern that has formed technically in today's session is encouraging for the bulls to make a comeback," Nagraj Shetti, technical and derivative analyst at HDFC Securities, told NDTV Profit. On the basis of the bullish baseline pattern, he expects Nifty to show "some upward momentum here onwards".
On Friday, the Nifty settled 151.15 points, or 0.69%, higher at 22,147.00, and the S&P BSE Sensex gained 599.34 points, or 0.83%, to end at 73,088.33.
The markets were in the green today, on the back of HDFC Bank Ltd. that saw a rise of nearly 2%. Deepak Mehta, founder and director of Elixir Equities, expects the stock to move up further. It is a good time to "tank up" on the shares as the earnings are going well and the economy is also positive, he said.
While HDFC Bank was in the positive through the day, the auto sector had a negative start before it saw some recovery. Mehta said that in terms of the auto industry, he has a neutral approach. According to him, the best way to go at it would be to let the earnings season play out and then decide which companies need to be bought.
On the other hand, with Elon Musk's upcoming visit next month, Mehta said auto ancillaries like Uno Minda Ltd., Sona BLW Precision Forgings Ltd. and Endurance Technologies Ltd. are good bets as Tesla's possible entry in India could benefit them. If the carmaker does enter the Indian market, these companies stand on the gaining side as they provide the required parts for the production of the vehicles, he said. "These products are not impacted by shift in transport sector."
Brijesh Ail, retail research at IDBI Capital, said that one can take long trade for Escorts Kubota Ltd. and Eicher Motors Ltd. They both have very limited downside, and he expects both the shares to gain further, he said.
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