Mid, small, and largecaps show strength; Nifty may head to 24,800: Rajesh Palviya, Axis Securities
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Mid, small, and largecaps show strength; Nifty may head to 24,800: Rajesh Palviya, Axis Securities
ETMarkets। Broader markets have done well and the way the market is showing strength, all the spaces — midcap, largecap, as well as smallcap, all three spaces — are looking attractive at this juncture। com Market breadth strengthens as midcaps and smallcaps rebound; mutual fund flows and SIP highs signal continued confidence and potential upside across all segments। Even especially in Friday’s session we have seen buying interest was there in midcap as well as in the smallcap space also and we have seen a strong recovery from the lower level from both the space, says Rajesh Palviya, Axis Securities। ET Now: Give us a sense of the week that we saw, rather lackluster not much has happened, but this is coming at a time when things could have gone much-much south and we are closing for the week only with a cut of 1%, and I say only because it could have been much worse। What are you making of the market move this week and what is your sense on the levels we can see heading into next week given that we could have some more escalation, even though we do not want to see that, but there could be a case for that over the course of the weekend, what are you penciling in for Monday morning open? Rajesh Palviya: Definitely, market has shown a very matured behavior despite this geopolitical tension between India and Pakistan। The way the broader market has behaved in this kind of uncertainty and geopolitical tension, that clearly is giving a sign that the market is holding the strength and market is poised for giving a breakout on the higher side। Yes, maybe we may have some more couple of days on a volatile side, but going forward we believe that once this settles down, we may see a good rally to unfold on the higher side and a possible rally can extend to 24,600 to 24,800 going forward। But from near-term perspective, for Nifty it is closed almost near to 20-day moving average। If Nifty slips below further towards 24,000, then possible cut of another 200-point towards 23,800 we may see। But again, 23,800 is the major support area for this corrective move, around those level we may see another support buying action to emerge in the market and possible pullback towards again 24,300 we may see। So, for time being 24,300 on the higher side, 23,800 would be the range for the Nifty। For Bank Nifty, there is a slightly weaker structure compared to the Nifty। Bank Nifty has broken its 20-day moving average on a closing basis। So, if Bank Nifty continues to trade below 54,000 mark, here we may see some more profit booking and possible down move can extend to 53,000 that is the next major support area for Bank Nifty। As we have already witnessed a very strong rally in banking stocks as well as in the Bank Nifty in the last couple of weeks, so some profit taking is happening in this volatility। So, Bank Nifty structure is looking slightly weak। Live Events ET Now: Give us a sense on what levels you are spotting for India VIX, how bad could it get before it starts getting better because we have seen quite the uptick coming in। Of course, compared to whatever is happening we are seeing a 2-3%, at best 4-5% uptick coming in on intraday basis, that is not much। But tell us if unfortunately things were to escalate from here, what impact is it going to have on the volatility that we can expect to see in the market। Rajesh Palviya: Definitely, India VIX is at an elevated level। We are now at about 20 mark, so volatility is likely to be there as fear index has moved up and the kind of geopolitical tension is there। On the higher side, the next level we could see towards 25, that is the next major multiple supply zone for the India VIX, 25 would be the next level where we may see some sort of stability in the market। So, 25 and if it slips below to 18 level, then maybe the market will be in a comfort zone; below 18 yes, we may see some stability in the market and volatility will subside and then buying action will also emerge in the market। So, the positions are very light at this juncture from the traders as well as from the investor। The bets are very thin in terms of nature। Everybody is waiting for this event to pass through and below 18 mark। Yes, again buying action would emerge in the market and we may resume again uptrend of the market। ET Now: Share with us some picks that you are liking at the moment, the kind of volatility we are seeing, amid a market like this where are you seeing value? Rajesh Palviya: First stock is from the chemical basket that is SRF। Stock is almost trading near to its all-time high trajectory। The way stock is holding above its 20-50-day moving average, so it is consolidating at higher level। So, we believe that SRF may extend its gain। Again, in Friday's session there was some buying interest in counter, so we believe that one can look to buy this SRF for an upside target of 3150, on the downside keep your stop losses around 2960। The second stock is from the defense space that is BEL, Bharat Electronics। Again, stock is negotiating with its multiple supply zone। Looking at the daily and weekly time frame, we believe that stock is continuously holding the strength and stock is moving in an up sloping channel on the weekly chart। The way stock is holding the ground at higher level, we believe that BEL can continue furthermore upside, possible upside target we may see towards 335, one can look to buy this stock also with stop loss of 310। ET Now: We have had AMFI numbers that have come out and we are still seeing resilience when it comes to inflows in the broader end of the market। Smids flows have stayed rather steady if you could call it that। Give us your sense on the broader end of the market because the kind of volatility we have seen one would expect that a certain amount of flows could be moving out from that to the larger end of the market in hopes for some sort of a safety net, but that has not been the case to a large extent। What is your view on the broader end of the market and where are you seeing the midcap and smallcap index heading। Rajesh Palviya: Broader markets have done well and the way the market is showing strength, all the spaces — midcap, largecap, as well as smallcap, all three spaces — are looking attractive at this juncture। Even especially in Friday’s session we have seen buying interest was there in midcap as well as in the smallcap space also and we have seen a strong recovery from the lower level from both the space। Yes, the focus would be more on the largecap space till this uncertainty is there। But the way midcap, smallcap indexes are holding their important moving averages, we can see some quality midcap, smallcap stocks also witness good buying interest in the coming days। So, one can remain invested as the mutual fund flows are clearly indicating that there is still confidence on the Street and then the kind of SIP flows have at all-time high, so that clearly shows the confidence in our market and I believe that going forward there could be a good amount of rally in all these spaces। So, Nifty could scale to the level of 24,600 to 24,800, maybe we can see good traction in midcap and smallcap also। (You can now subscribe to our ETMarkets WhatsApp channel ) Read More News on midcap stocks rally smallcap recovery largecap investment trends nifty target 24800 market confidence sip flows mutual fund inflow trends stock market outlook broader market performance technical support levels indian equity market rally (What's moving Sensex and Nifty Track latest market news , stock tips , Budget 2025 , Share Market on Budget 2025 and expert advice , on ETMarkets । Also, ETMarkets। com is now on Telegram। For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds । ) Subscribe to ET Prime and read the Economic Times ePaper Online। and Sensex Today । Top Trending Stocks: SBI Share Price , Axis Bank Share Price , HDFC Bank Share Price , Infosys Share Price , Wipro Share Price , NTPC Share Price । more less (You can now subscribe to our ETMarkets WhatsApp channel ) Read More News on midcap stocks rally smallcap recovery largecap investment trends nifty target 24800 market confidence sip flows mutual fund inflow trends stock market outlook broader market performance technical support levels indian equity market rally (What's moving Sensex and Nifty Track latest market news , stock tips , Budget 2025 , Share Market on Budget 2025 and expert advice , on ETMarkets । Also, ETMarkets। com is now on Telegram। For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds । ) Subscribe to ET Prime and read the Economic Times ePaper Online। and Sensex Today । Top Trending Stocks: SBI Share Price , Axis Bank Share Price , HDFC Bank Share Price , Infosys Share Price , Wipro Share Price , NTPC Share Price । more less Prime Exclusives Investment Ideas Stock Report Plus ePaper Wealth Edition Airlines profit to IATA meet, how India-Pak conflict will impact Indian aviation Explainer: How the India-UK FTA will make British scotch, imported cars cheaper here Good, bad, or ugly? 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Posted on 11 May 2025 | Check HeadlinesNow.com for more coverage.
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