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Rajesh Bhatia, MD &amp; CIO at ITI Long Short Equity Fund said India this year will be a US$3-3.5 trillion economy and will register the fastest growth in the world.&nbsp;&nbsp;

Rajesh has over 30 years of investment experience in Indian equities; Last 14 years in Alternative Investments (Long-Short fund management). In his last assignment, Rajesh was CIO, Simto Investments, a subsidiary of Tata Investments; proprietary book.

In an interview with Zeebiz's Kshitij Anand, Bhatia said that India is at the cusp of earnings and credit cycle and therefore, if these inflation scares prove to be transient, then FIIs will have to come back to India and corporate earnings growth in double-digit will lead to the double-digit in stocks as well. Edited excerpts:

Q) The Russia-Ukraine war is showing signs of easing out and the impact is felt on equity markets across the globe as well. Is the worst over for India as well?

A) It is difficult to call the timing of the conclusion of the war. We must take into account that Russia is a large country and a significant exporter of Oil, Coal, Wheat, etc.&nbsp;&nbsp;

The disruption to supplies due to the war or sanctions is having an impact on commodity inflation.&nbsp; Therefore, the longer the war lasts or the more severe the sanctions, the greater the upward push to these commodity prices.&nbsp;&nbsp;

Given that there already was an undertone of rising inflation, a long war or severe sanctions could prolong this problem. So, to conclude, it is difficult to say that the worst is over.

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Q) The US Fed rate hike in March and the possibility of six more hikes could fuel risk off sentiment. Do you see the FII exodus&nbsp;intensifying in the coming months? They have already pulled out more than Rs 44000 cr from the cash segment of Indian equity markets?

A) There have been two views on the markets over the last few months. One is the FII view, which has been large seller in the Indian equity markets.&nbsp;&nbsp;

Their view has been that India, while at the cusp of an earnings and credit cycle upturn, has incorporated this upcycle in the 16-18% CAGR earnings estimate for FY23 and FY24.&nbsp;&nbsp;

And post incorporating the growth in earnings, the Indian markets were trading at 17-18x FY24 earnings, which has been at the highest band of its historic PE ratio.&nbsp;&nbsp;

So, while earnings were adequately discounted, these valuations did not account for the potential rise in interest rates globally (particularly in the US to which Indian cost of capital is also linked) - note, as interest rates go up, PE ratios tend to decline.&nbsp;&nbsp;

Further, the Indian market also did not account for the sharp increases in inflation which had the potential to hurt the earnings estimates as well. In effect, this led to their negative view on Indian markets and hence the record amounts of selling from FII.

On the other hand, the Indian investor has a more positive outlook on India. India this year will be a US$3-3.5 trillion economy and will register the fastest growth in the world.&nbsp;&nbsp;

It is at the cusp of the earnings and credit cycle and therefore if this inflation scares prove to be transient, then FIIs will have to come back to India and corporate earnings growth in double-digit will lead to the double-digit in stocks as well.

It is difficult to call the trajectory of inflation and especially since the outlook is clouded by the Russian invasion of Ukraine (Russia is a large exporter of oil, wheat, coal, etc so a long-duration war or high sanctions would acerbate inflationary pressures and vice-versa) and the spike in covid cases in China (production stoppages in China could worsen supply chain issues).&nbsp;&nbsp;

So, we expect the volatility in equity markets to continue in the short term as it navigates this inflation direction. The FII participation will therefore depend on how this inflation trajectory evolves.

Q) Moody’s downgraded GDP forecast for India while JPMorgan downgraded India to Underweight from Neutral. What do the stars foretell? Is there any historic reference?

A) Well, certainly the risks for India have certainly increased and those risks are front-ended. We believe the risks are front-ended and are inflation-related.&nbsp;&nbsp;

Note, the primary reason why equity markets did well globally post covid was due to the sharp decline in interest rates thanks to the increase in liquidity by global central bankers and the sharp drop in interest rates.&nbsp;&nbsp;

Any reversal in the interest rate trajectory could have a reverse effect on equity markets. What is unknown is the depth and duration of this interest rate hike cycle.&nbsp; We will have the answer to these questions in the next few months.

Also, references to past cycles is not relevant.&nbsp; Earlier when interest rates would go up, it was part of a normal business cycle, but here interest rates were artificially engineered by global central bankers.&nbsp; So we may have to do some original thinking on the economic implications and trajectory.&nbsp;&nbsp;

Having stated the above, if inflation were to cool off, India would be the best equity market in the world. And therefore, earnings growth in the double-digit will lead to double-digit returns from stocks as well.

Q) What are your top bets (stocks for FY23) and why?

A) We can comment on sectors.&nbsp; We like the IT, Telecom, Insurance, private banks, and select consumer stocks from here on.

We are also likely to increase cyclical bets as we either get a better handle on inflation trajectory or if valuations decline for these stocks to make them attractive.

Regardless, cyclical are a part of our tactical portfolio which we increase or decrease depending on our short-term views also.

Q) The new age stocks took some beating in March and many are trading below issue price. Any word of advice for forthcoming IPOs and how should investors shortlist stocks for investment?

A) One observation is how few investors in India have paid attention to risk-return frameworks in the recent past.

At one end, high PE ratios are assigned to consumer companies with low long-term earnings growth trajectory and even weaker outlooks, and the other end, how early-stage digital companies were offered sky-high valuations even though the range of outcomes of their future cash flows was very high and uncertain.

Usually, the outcome of such investing is sub-optimal returns as the best case.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

In an interview with Zeebiz's Kshitij Anand, Bhatia said that India is at the cusp of earnings and credit cycle and therefore, if these inflation scares prove to be transient, then FIIs will have to come back to India and corporate earnings growth in double-digit will lead to the double-digit in stocks as well.


Dalal Street Voice: India at cusp of an earnings and credit cycle; could hit $3 trn GDP mark this year: Rajesh Bhatia of ITI Long Short Equity Fund

Indian market closed in the red on Wednesday tracking muted global cues. The S&amp;P BSE Sensex fell over 300 points while the Nifty50 closed below 17300 levels.

Sectorally, buying was seen in metals, utilities, power, and oil &amp; gas stocks while banks, finance, auto, and capital goods stocks saw some selling pressure.

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Stocks that were in focus include Dr Reddy’s Laboratories which closed with gains of over 2 percent, Hero MotoCorp fell over 1 per cent and TCS closed flat with a positive bias on Wednesday.

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:

TCS: Buy

The counter is forming a triangle formation. It has retested its previous breakout level after hitting a fresh 52-week high of Rs. 4041.

On the upside, 3750 is a susceptible area. Above this, we can expect a run-up towards 3850+ levels in the near term. On the downside, Rs 3550 is major support at any correction.

Dr Reddy's Laboratories: Hold

The counter took support near the 200-Days SMA on the weekly chart. The chart is showing a reversal and it has already seen a sharp decline from the high levels of 5600.

On the upside, Rs 4400-4420 is an immediate resistance area, above this, we can expect a rally towards Rs 4800.

On the downside, Rs 3950 is an immediate demand zone. Most of the momentum indicators are showing positive divergence.

Hero MotoCorp: Avoid

The counter is forming a down-sloping channel formation and has also given a breakdown from a horizontal line around 2600 level.

The overall structure is looking weak as it trades below its all-important moving averages however it is having a demand zone near 2140.

On the upside, 2560-2580 has become an immediate resistance area; above this, we can expect a run-up towards 2700+ levels in the near term. On the downside, if it breaks the 2260 level then 2140 is the next support level.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today.


Buy, Sell or Hold: What should investors do with Dr Reddy’s Laboratories, Hero MotoCorp and TCS?

Dhaval Kapadia, Director- Managed Portfolios, Morningstar Investment Advisor India said that assuming a horizon of 10+ years, one could look to invest with a portfolio mix of about 80-85% into equities (Large/Mid/Small-cap/International – 50/10/5/20) and 15% into fixed-income funds.

Kapadia has more than 23 years of experience in areas including fixed income, equity markets and investment advisory. Prior to joining Morningstar in 2014, he spent nearly six years at Axis Bank, leading a team of Investment Advisors, which were a part of the Wealth Management &amp; Private Banking businesses.

In an interview with Zeebiz's Kshitij Anand, Kapadia said one could also look to have about 5-10% exposure to gold, from a diversification perspective as gold has a low correlation with other asset classes and is seen as a safe-haven asset in times of global risk-off sentiment.&nbsp;Edited excerpts:

Q) What does the BJP win in 4 states mean for markets, economy and reforms?

A) Market participants could perceive this as a pre-cursor to the general elections in 2024. Continuity in government and the presence of the ruling party at the state level is viewed as positive in executing government schemes efficiently and pushing through reforms at the ground level, which could support economic growth.

Q) The war-like scenario must have wiped out a good 5-10% of investor portfolio in a matter of weeks. What advice would you like to give to investors? Should one stay put, add on dips or cash out – what does the history suggest?

A) A look at the history of geopolitical events since 2000, indicates that equity markets (represented by S&amp;P 500 below) have generally recovered any losses over the subsequent 1-year period (except for the US terrorist attacks in 2001).

Hence, it would be advisable for investors to stay put. A look at the historical index growth of the broader equity market index (S&amp;P BSE 500) shows that markets have scaled higher peaks through time responding to drivers such as inflation, earnings growth, and change in valuations.

Over long horizons (10+ years), equities can be expected to deliver around 4-5% over the long-run inflation rate. 
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Withdrawing any corpus would lower your portfolio value to the extent of the amount withdrawn and you might lose out on any subsequent gains on the withdrawn corpus that would have accrued till the end of your investment horizon. The withdrawals defeat the purpose of investing which is to generate wealth.

Investors should stick to their long-term strategic asset-allocation which in turn depends on their risk appetite (ability and willingness to take risk) and not try and time the markets.

You can consider re-balancing your asset allocation back to your recommended long-term asset allocation in case of any material drift due to the recent market correction.

Any sharp correction in the market in response to short-term events should be seen as an opportunity to buy into the market, after weighing in any potential impact of the event on the long-run return drivers.

Q) If someone plans to put in Rs 10L after the recent double-digit fall seen in benchmark indices from 52-week highs. What is the right asset allocation strategy considering someone is in the age bracket of 30-45 years of age? Also, should one do lump sum or STP?

A) Investors should ideally follow an asset allocation-based approach (mix of equity, debt, commodities, real estate, etc.) for investing towards one’s goal.

While fixed-income lends stability to the portfolio, equities play a crucial role in wealth generation over the long run with the potential to deliver superior inflation-adjusted returns compared to fixed-income.

Valuations play a crucial role while determining exposure to any asset class /security. Lower (cheaper) valuations reduce the risk of high future capital loss and improve upside potential, and vice-versa.

·&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;The allocation to equities should be a function of your risk profile and investment horizon as related to your goal. Investors should stick to their strategic asset allocation (SAA) which in turn depends on their risk appetite (ability and willingness to take risk) and not try and time the markets. Higher the investment horizon and risk appetite, higher can be the allocation to equities.

·&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Assuming a horizon of 10+ years, one could look to invest with a portfolio mix of about 80-85% into equities (Large/Mid/Small-cap/International – 50/10/5/20) and 15% into fixed-income funds. The international equity allocation offers diversification across geographies and also acts as a hedge against rupee depreciation. For investment in fixed-income, you can consider fixed income funds with a high (safer) credit quality portfolios such as Banking &amp; PSU debt funds and Medium to long term funds. One could also look to have about 5-10% exposure to gold, from a diversification perspective as gold has a low correlation with other asset classes and is seen as a safe-haven asset in times of global risk-off sentiment.

·&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Volatile asset classes (equity, gold) witness sharp cycles with both strong up-move phases and down-move phases. Given their cyclical nature and high volatility, it is advisable to invest in a staggered manner, via the SIP or STP route.

A SIP/STP facilitates regular investments at periodic intervals, enabling an investor to average out the cost of his investments. This benefits investors in falling markets since they would be buying units at cheaper prices. The STP duration could be around 6-12months given that the volatility may be short-term in nature.

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Q) With interest rates likely to head North – what is the right strategy for MF investors? Should they look at tweaking their asset allocation?

A) Since 2019, the RBI has cut the policy rate sharply (250 bps) and announced a slew of measures to support the slowdown in the economy. These measures along with abundant liquidity in the banking system resulted in yields falling across the yield curve, particularly at the shorter end leading to a steepening of the yield curve.

Currently, the medium-end of the curve (4 to 7-year segment) offers an attractive yield pick-up relative to the shorter end (1 to 3 year segment) of the curve. Hence, from a risk-reward perspective the medium-term segment looks attractive. In the YTD period, the yield curve has seen an upward shift to some extent reacting to rising global bond yields amid the global economic recovery and inflationary pressures, and more recently on account of steep rise in crude oil prices.

Corporate bond spreads have narrowed significantly compared to their long-term averages (particularly for the AAA-rated segment); so subsequent widening of spreads could present additional downside risk to investors. Hence, funds with high exposure to G-secs look more suitable than corporate bond funds at this juncture.

For those investing for a reasonably long horizon (more than 5 years), one could follow a core and satellite approach for the fixed-income portion of the portfolio.

The core allocation (75-80%) should be invested into shorter duration high credit quality accrual funds (short-duration, floating-rate and medium duration funds) and the rest (~20-25%) to longer duration funds such as Medium-to-long term and Dynamic Bond Funds.

One could consider target maturity funds (investing in Government securities with 5-10 years maturities) having a maturity date close to their investment horizon.

These entail minimal interest rate risk if held to maturity and also have a low expense. Investors should evaluate the suitability of the above recommendations with their risk appetite in perspective. 
&nbsp; 
Q) Retail investors reaffirmed their faith in equities amid volatility (geopolitical towards later part of the month) as equity funds saw a net increase of more than Rs 19000 cr in Feb. What is your view and do you think this war-like scenario could result in a slowdown in the flows?

A) Equity mutual funds have witnessed robust inflows (Rs 1.56 Tn cumulative) over the past year, as markets scaling record highs since the lows of March 2020 has piqued investor asset in equities as an asset class – also evident by the record rise in the number of Demat accounts relative to pre-pandemic levels.

A sizeable SIP book (industry level) has also helped in getting decent flows into funds, despite higher volatility in markets since November on concerns of tightening by major global central banks and the recent geopolitical tensions between Russia and Ukraine.

A sharp recovery in corporate earnings amid a pick-up in economic activity has trimmed down valuations that seemed pricey a few months ago, improving attractiveness for the asset class.

Markets have witnessed a drawdown of ~13% (S&amp;P BSE 500) in the YTD period but have since quickly regained some ground (up 5% from March 07 till March 11).

Investors would also be cognizant of the sharp surge in equity markets since the lows witnessed at the outset of the pandemic.

Hence, flows could continue unless Russia -Ukraine tensions flare up raising concerns around global growth amid high commodity prices and faster tightening by the U.S. Fed to tame inflation.

Q) Crude above $100 – what is the kind of impact you foresee on markets, economy and India Inc. in upcoming quarters?

A) India imports over 70-80% of its crude oil requirement. Crude prices at the current high levels would weigh on India’s import bill widening the trade deficit which in turn would weigh on the rupee.

High crude oil prices could translate into an increase in fuel prices (petrol, diesel) along with the second order effect of an increase in raw material &amp; transportation costs feeding into the price of most goods and services leading to higher inflation, which could impact demand and hurt economic growth.

Higher inflation would also lower the profit margins of India Inc. leading to depressed earnings, and result in higher valuations for equities which may correct to account for the same.

Higher inflation may also warrant faster monetary tightening by the RBI and lead to increased bond yields, which would impact borrowing costs in the economy and thereby impact demand.

Of course, the RBI would also consider the impact of higher inflation &amp; global uncertainties on trade &amp; broader economic growth prior to raising interest rates.&nbsp;&nbsp;

Q) Gold recently became buyers’ favourite – what should be your strategy in case someone plans to put fresh money in the yellow metal? Should they buy physical Gold or digital and why?

A) Gold plays an important role as a diversifier in a portfolio due to its low correlation with other asset classes and is seen as a safe-haven asset in times of global risk-off sentiment. It is seen as a store of wealth and as a hedge against inflation and currency depreciation.

Gold’s importance as a diversifier has been re-instated during the COVID-19 pandemic led sell-off in markets in February-March 2020, as it witnessed a drawdown of only ~11% in INR terms (S&amp;P GSCI Gold Spot index) compared to ~38% drawdown by domestic equities (S&amp;P BSE 500 TR Index).

From an asset-allocation standpoint, it is advisable to have some allocation to gold (~5-10%) for diversification benefits.

Like in other volatile assets, it is advisable to build exposure to gold in a staggered manner to benefit from rupee cost averaging. This benefits investors in falling markets since they would be buying units at cheaper prices.

Digital vs Physical Gold

Digital gold is a virtual method of investing in gold, without having to physically hold the gold and can be purchased for as low as Rs 1. Digital gold purchased is 24k gold and the buyer is assured of purity as it is certified by licensed agencies.

It is stored in insured vaults by the seller on behalf of the buyer. Digital gold can be sold online or buyers can even exchange it and take delivery of physical gold.

Physical gold, on the other hand, is usually mostly for jewellery and is typically not considered an investment option. It entails costs such as making charges, storage costs etc, adding to the investment cost.

Moreover, holding gold in its physical form at home is fraught with risks. Physical gold is typically purchased in multiples of 1 gram, while digital gold can be accumulated in much lower denominations.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Dhaval&nbsp;Kapadia has more than 23 years of experience in areas including fixed income, equity markets and investment advisory.&nbsp;


Dalal Street Voice: Dhaval Kapadia of Morningstar gives asset allocation tips to investors with 10 years of horizon

Indian market bounced back on Tuesday after falling nearly 1 per cent in the previous trading session. The S&amp;P BSE Sensex rallied nearly 700 points, while the Nifty50 closed above 17300 levels. 
 
Sectorally, buying was seen in oil &amp; gas, IT, banks, auto, and telecom stocks while selling was seen in realty, FMCG, healthcare and consumer durables. 
&nbsp;

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Stocks that were in focus include NIIT Ltd which closed with gains of over 13 per cent, Paytm closed with losses of nearly 4 per cent, and Vedanta rose nearly 1 per cent on Tuesday. 
 
Here's what Vijay Dhanotiya Lead of Technical Research, CapitalVia Global Research Limited, recommends investors should do with these stocks when the market resumes trading today: 
 
Vedanta: Buy 
 
Vedanta has been trading in an ascending channel. It has also broken its all 52-week high and has picked up momentum since then as well. 
 
We have also witnessed the momentum indicators like RSI and MACD indicating the positive momentum is likely to continue. We recommend investors to buy this stock above 405 with a target of 490 and a stop loss can be placed below Rs 325. 
 
NIIT: Buy 
 
The stock has been trading in an ascending channel. It has given a breakout of an ascending channel. The momentum is likely to continue in the stock. 
 
We recommend investors to buy the stock above 585 with a target of 650 and a stop loss can be placed below Rs 500. 
 
Paytm: Avoid 
 
Paytm has continuously been trading downwards since its debut on the stock exchange. We do not recommend investors to buy the stock at current levels. 
 
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

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Indian market bounced back on Tuesday after falling nearly 1 per cent in the previous trading session. The S&amp;P BSE Sensex rallied nearly 700 points while the Nifty50 closed above 17300 levels.
&nbsp;


Buy, Sell or Hold: What should investors do with NIIT, Paytm and Vedanta?

Consumer electric company Voltas Ltd shares have risen 29 per cent in the last one year compared to over 17 per cent upside seen in the Nifty50.

The company, which is engaged in the business of air conditioning, refrigeration, electro-mechanical projects as an EPC contractor both in domestic and international geographies (Middle East and Singapore) is one of the best play to beat the heatwave.

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&nbsp;

The stock with a market capitalization of nearly Rs 42000 cr hit a 52-week high of Rs 1356 in October 2021, and the trend went sideways after this. The stock was moving in a broad range of nearly 200 points on daily charts.

The stock has been volatile since last October but it is now trading near the breakout levels which makes it an attractive buy for a bigger target towards Rs 1500 in the next 6-9 months, suggest experts.

The stock after hitting a 52-week high of Rs 1356 on 19 October 2021 found support near Rs 1100 levels in November and slipped below Rs 1100 in March to record a vertical rise which took it towards 1300 levels in 7 trading sessions.

The vertical rise seen in the stock makes it an attractive buy and is also trading near the breakout level of Rs 1320-1140. A close above this level could take the stock towards fresh 52-week highs, suggest experts.

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Technically, the stock is trading above short- and long-term moving averages of 30,50,100, and 200 DMA which is a positive sign.

“The stock price hit an all-time high of 1357 in the month October last year and since then been sideways. It has been consolidating its gains after the up move and formed a base for next leg of the rally,” Ashish Chaturmohta, Director, Equity Research, Sanctum Wealth, said.

“Price has taken support at 50-week moving average (green line) and bounced back. Price is now at breakout level of the range 1320-1140. It has formed long-ranged bullish candlestick above breakout level indicating buying momentum in the stock,” he said.

Chaturmohta further added that the stock can be bought at current levels on dips to 1245 with a stop loss of 1200 for the target of 1500 in the coming 6-9 months.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Consumer electric company Voltas Ltd shares have risen 29 per cent in the last one year compared to over 17 per cent upside seen in the Nifty50.


Technical Check: Voltas eyes breakout on charts; poised to hit fresh highs in next 6-9 months

Leading real estate developer DLF Limited has risen by 23 per cent in one year compared to 17 per cent upside seen in the Nifty50 in the same period. But a recent breakout seen on weekly charts suggests that there is some more upside left in the stock.

The real estate major has been under pressure despite the positive trend seen in the Nifty50. In the last three months, DLF fell nearly 8 per cent compared to near 2 per cent upside seen in the Nifty50 in the same period, and about 2 per cent fall seen in the Nifty Realty.

The stock hit a 52-week high of Rs 449.80 on 18 October but the trend went sideways after that. The stock finally took support near 300 on 7 March and staged a smart bounce back.

DLF is trading close to its 200-Days EMA placed around 363 and a close above Rs 390 could put bulls back in control, suggest experts.

The recent price action suggests that bulls plan to make a comeback, and a close above Rs 390 could push the stock towards 450 in the next 6 months surpassing its previous high of Rs 449, they say.

The risk-to-reward ratio is favourable for investors who can hold the stock. Investors who already own the stock can hold while fresh money can be deployed when prices close above Rs 390.

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The long-term weekly chart of DLF shows that there is a structural similarity (of varying degrees) over the past 10 years. As can be seen in the chart, the initial leg saw prices moved from 500 in October 2009 to 100 in February 2016, while the next 6 years have seen a similar upward move.

Within this secondary move, we saw the prices moving in a parallel channel till April 2021. The pandemic lows saw prices correcting to 115 (a higher low as compared to those created in 2016).

Post this corrective move, we saw a rational uptrend till October 2021 when prices created a 52-week high at 450. There has been a welcome correction post wherein prices have respected the 38.2% Fibonacci retracements at 321.

“The short-term chart of DLF shows testing of the 200-DMA above Rs 360. Post this test of levels last week, we have seen a bullish weekly candle with close almost equivalent to the high of the week,” Pushkaraj Sham Kanitkar, VP Equities at GEPL Capital Ltd, said.

"The second level breakout on the daily chart will once get confirmed when prices break above the level of 390, the earlier 23.6% retracement. The breakout will also bring it in close contention of the confluence of 20 Week MA (100Day) currently around 388,” he added.

Kanitkar further added that while a daily close above 390 will kick in a further burst of momentum, current pricing augurs well from the risk-reward perspective.

One can eye upsides to the 52-week high around 450 as an immediate target, the 13-year HIGHs around 520 will stand as a secondary target, he said. An initial stop loss should be placed somewhere below 319; a bit below the recent swing low.&nbsp;&nbsp;

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Leading real estate developer DLF Limited has risen by 23 per cent in one year compared to 17 per cent upside seen in the Nifty50 in the same period.&nbsp;


Technical Check: Risk-reward positive for DLF; breakout above 390 to take stock at 52-week high

Devarsh Vakil- Deputy Head of Retail Research, HDFC Securities said that richly valued consumption stocks will have tough time passing on higher prices to customers. Commodities have had a decent run and it is due for a pullback.&nbsp;&nbsp;

In an interview with Zeebiz's Kshitij Anand, Vakil said that Gold is a hedge against accidents in financial systems, and we recommend a 5% exposure to Gold as a portfolio hedge.

Edited excerpts:

Q) What does the BJP win in 4 states mean for markets, economy and reforms?

A) Markets hate uncertainty, and the outcome of these state elections will provide policy continuity and stability.

Based on this mandate, the Central government will be buoyed to carry out its agenda confidently and look for opportunities to pursue economic reforms.

Q) The war-like scenario must have wiped out a good 5-10% of investor portfolio in a matter of weeks. What advice would you like to give to investors. Should one stay put, add on dips or cash out – what does the history suggest?

A) Despite wars and famines, the history of markets suggests that indices have scaled newer and higher peaks. Whether one should buy or add to his portfolio depends on the available cash with investors.

We asked investors to generate cash in Mid-January anticipating market volatility.

We have been recommending gradual redeployment of that liquidity though keep some powder dry to take care of unforeseen volatility.

Q) With interest rates likely to head North, what is the right strategy for MF investors? Should they look at tweaking their asset allocation?

A) Asset allocation depends on an individual’s risk appetite and return expectations. It is different and unique for every individual.

SIP is generally a smarter way to invest but if one is comfortable with risks of short-term volatility, recent falls do provide an opportunity to deploy some cash on a lump-sum basis.

Q) Retail investors reaffirmed their faith in equities amid volatility (geopolitical towards later part of the month) as equity funds saw a net increase of more than Rs 19000 cr in February. What is your view and do you think this war-like scenario could result in a slowdown in the flows?

A) We do not expect a slowdown of flows from retail investors – tax savings / ELSS schemes should attract significant flows in the month of March.

Q) Crude above $100 – what is the kind of impact you foresee on markets, economy and India Inc. in upcoming quarters?

A) Crude prices have been volatile lately and have now corrected below the $100 mark, while briefly trading above $130 mark last week.&nbsp;&nbsp;

Higher crude oil and other commodities like metals, gas, edible oils prices which are imported into India will push up prices across the board.&nbsp;&nbsp;

Manufacturers were anyway struggling to increase the product prices before the current bout of surge in commodity prices and now this will dent the margins for sure. Many small and marginal manufacturing players will stare at losses in orders on hand.

Q) Gold has become buyers' delight. What should be the strategy in case someone plans to put fresh money in the yellow metal? Should they buy physical Gold or digital and why?

A) Digital gold is preferable as it does not present challenges of storage and easier to transact.

Gold is a hedge against accidents in financial systems. Allocation to gold depends on the individual’s needs and risk appetite as per her asset allocation plan.&nbsp; We recommend a 5% exposure to Gold as a portfolio hedge.

Q) What is your take on the rupee? Which sectors could get impacted the most from recent volatility?

A) Boiling oil prices and consistent FIIs withdrawal on geopolitical jitters pushed the rupee to all-time lows last week. The USD/INR pair fell from the highs of 77.17 after OPEC promised to pump more oil to fix the demand-supply imbalance.

A 25-basis point rate hike by US FOMC's meet is on the cards. We expect spot USDINR to consolidate in the range of 75.5 to 77 for this quarter.

Q) Are there any sectors that you think have run out of steam and investors should ideally look at booking profits or trimming their positions?

A) Richly valued consumption stocks will have a tough time passing on higher prices to customers. Commodities have had a decent run and it is due for a pullback.&nbsp;&nbsp;

Investors should pull back some exposure from these sectors and redeploy the same in financials.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Devarsh Vakil- Deputy Head of Retail Research, HDFC Securities said that richly valued consumption stocks will have tough time passing on higher prices to customers. Commodities have had a decent run and it is due for a pullback.&nbsp;&nbsp;


Dalal Street Voice: After a decent run, commodities are due for a pullback: Devarsh Vakil of HDFC Securities

Indian market snapped a 2-day winning streak on Monday to close with a loss of nearly 1 per cent. The S&amp;P BSE Sensex fell nearly 600 points while the Nifty50 closed just a shade above 17,100 levels. 
 
Sectorally, buying was seen in metal, and healthcare stocks while selling was seen in utilities, power, FMCG, and banks. 
&nbsp;

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Stocks that were in focus include Balrampur Chini which closed 4 per cent higher, Supreme Petrochem rallied more than 4 per cent, and Aurobindo Pharma closed with gains of over 6 per cent on Monday. 
 
Here's what Jatin Gohil - Technical and Derivative Research Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today: 
 
Balrampur Chini: Buy on dips | Target: Rs600 | Time Duration: 1-2 Months 
 
On 15th March’22, the stock tested its short-term support zone (Rs447-460) and bounced subsequently, which took it to a new life-time-high of Rs521. 
 
Major technical indicators are positively poised, hence, our bullish view will remain intact. The stock has the potential to move towards Rs600. 
 
In case of decline, its short-term support zone will the stock will continue to work as a reversal point. 
 
Supreme Petro: Buy on dips | Target: Rs992 | Time Duration: 1-2 weeks 
 
The stock witnessed a breakout from a bullish continuation pattern-Flag and recorded a new high of Rs900. 
 
The key technical indicators are in favour of bulls. This could lead the stock towards Rs926 initially and Rs992 subsequently. 
 
On the lower side, the stock will find support around the Rs820-810 zone. 
 
Aurobindo Pharma: Buy on dips | Target: Rs767 | Time Duration: 1-2 Months 
 
The stock bounced after a narrow range consolidation (Rs650-620) and closed above its key moving averages. 
 
Its key technical indicators recovered from the lower level and were&nbsp;given a buy signal. 
 
The stock has the potential to move towards Rs742 initially and Rs767 subsequently. 
 
A pullback towards Rs650 will provide a better risk-reward for fresh long trades. 
 
In case of decline, the stock will find major support around Rs590-580 zone. 
 
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

&nbsp;

Indian market snapped a 2-day winning streak on Monday to close with a loss of nearly 1 per cent


Buy, Sell or Hold: What should investors do with Balrampur Chini, Supreme Petro and Aurobindo Pharma?

Indian market closed in the green with gains of above 1 per cent for the second day in a row on Thursday. The S&amp;P BSE Sensex rallied more than 1000 points while the Nifty50 closed just a shade below 17300 levels. 
 
Sectorally, buying was seen in realty, consumer durables, energy, consumer discretionary while some selling was seen in IT stocks. 
 
Stocks that were in focus include Trent which closed 7 per cent higher, HDFC Ltd rallied more than 5 per cent, and ONGC closed with gains of nearly 2 per cent on Thursday. 
 
Here's what Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today: 
 
Trent: Buy 
 
This counter appears to have registered a consolidation breakout on large volumes. It was moving in a range of 1210 and 970 levels for the last 22 weeks. 
&nbsp;

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Moreover, with this breakout, this counter entered in an uncharted territory hinting at the resumption of a long-term uptrend. 
 
Hence, if the stock sustains above Rs 1,187 levels then this counter can eventually head towards 1450 levels. 
 
Therefore, positional traders are requested to adopt a two-pronged strategy of buying now and on dips preferably in the zone of 1230 – 1210 levels, and look for a higher target of 1447 levels. 
 
A stop loss suggested for the trade is a close below Rs 1,200 levels. &nbsp; &nbsp; &nbsp; &nbsp; 
&nbsp; &nbsp; 
HDFC Ltd: Buy 
 
This counter seems to have registered a strong breakout from the down-sloping trendline on the short-term charts. 
 
Hence, if the stock sustains above the bullish gap zone of the last session, present between 2346 and 2320 levels – then it should eventually retrace 62% of the last leg of the fall from the highs of 3021 to a low of 2046 levels. 
 
Hence, fresh buying can be done around current levels with a stop below 2340 on a closing basis. 
 
ONGC: Buy 
 
This counter appears to have registered a tradable bottom around 160 levels, after the recent fall from the highs of 195. 
 
The strong move of the last session as a follow-through to the Hammer formation can be hinting that it is positioning itself for a pullback rally. 
 
Hence, if the stock sustains above 162 levels, then it can eventually head towards 182 levels. Therefore, positional traders are advised to buy into this counter with a stop below 160 levels and look for a target of 180. &nbsp; 
 
Analyst disclosure: Neither I nor my clients own any of the scrips discussed above. &nbsp; &nbsp; 
 
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

&nbsp;

Indian market closed in the green with gains of above 1 per cent for the second day in a row on Thursday.&nbsp;


Buy, Sell or Hold: What should investors do with HDFC, Trent and ONGC?

Deepak Jasani, Head of Retail Research, HDFC Securities said that the erstwhile leading sector Metals took a break due to profit-taking and fall in geopolitical hostilities while Banks and consumer sectors caught up on relative valuations.

In an interview with Zeebiz's Kshitij Anand, Jasani highlights that the Nifty50 can range trade between 17639 to 16988, while Bank Nifty could trade between 37318 to 35804. Edited excerpts:

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Q) Bulls took charge of Indian markets this week. Benchmark indices rose over 4% in the holiday-shortened week. What led to the price action?

A) The seeming reduction in the intensity of current concerns (war, crude oil prices etc) led to a fall in selling pressure across the globe and deployment of cash into equities by investors who were waiting on the sidelines.

Foreign Portfolio Investors (FPIs) turned buyers toward the end of the week and small and midcap stocks started to participate in the upmove reflecting better sentiments among retail investors.

Q) The Nifty50 is back above 17000. What is the kind of level you foresee for the index and NiftyBank in the coming week?

A) Nifty can range trade between 17639 to 16988, while Bank Nifty could trade between 37318 to 35804.

Q) Sectorally, consumption and banking stocks took charge. What led to the price action, however, last week’s star ‘metals’ took some beating? What led to the price action?

A) The erstwhile leading sector Metals took a break due to profit-taking and fall in geopolitical hostilities while Banks and consumer sectors caught up on relative valuations.

Q) The US Fed took the first step in raising rates which were factored in by market participants. But, do you think further rate hikes could impact equity markets or the worst is factored in?

A) While the 25 bps rate hike was in line with most expectations, any indication of a faster hike in the next meet and expectation of a faster than expected reduction in the Fed Balance sheet could dampen sentiments.

Q) Bulls have taken control of D-Street – do you think these are appropriate level to invest or long-term investors could wait for a while?

A) For people who are under-invested in equities, they can start investing in Nifty stocks or other stocks where they have done enough study, in a gradual manner.

People who are fully or close to fully invested can wait for a decent correction before committing further funds. In fact, they can look to raise some cash in the ensuing rally.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

In an interview with Zeebiz's Kshitij Anand, Jasani highlights that the Nifty50 can range trade between 17639 to 16988, while Bank Nifty could trade between 37318 to 35804. Edited excerpts:


Metals took breather last week due to profit taking and fall in geopolitical hostilities: Deepak Jasani of HDFC Securities

Amit Jain, Chief Strategist - Global Asset Class, Ashika Group said that we may see the level of 17600 on the Nifty50 next week unless we have some shocking news from the Russia-Ukraine war. Bank NIFTY may test levels of 36800 next week.

In an interview with Zeebiz's Kshitij Anand, Jain said that Banking &amp; FMCG sector offers a great value buy opportunity at current levels. Even automobiles can be bought once global commodity prices start cooling off. Edited excerpts:

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Q) Bulls took charge of Indian markets this week. Benchmark indices rose over 4% in the holiday-shortened week. What led to the price action?

A) In our view markets are up 4% this week due to the declining intensity of FII selling &amp; partial short covering. Beginning this week, markets were in oversold territory, hence there was supposed to be a technical bounce back, which happened.

Also, positive assembly election results in favour of BJP further build the confidence of investors in the ruling government.

[[{"fid":"177804","view_mode":"default","type":"media","attributes":{"height":804,"width":676,"class":"media-element file-default"},"link_text":null}]]

Image:&nbsp;Amit Jain, Chief Strategist - Global Asset Class, Ashika Group

Q) The Nifty50 is back above 17000. It is the kind of level you foresee for the index and NiftyBank in the coming week?

A) Yes, Nifty is above 17000 now, in my view next week, we may see the level of 17600 unless we have some shocking news from the Russia-Ukraine war. Also Bank NIFTY may test levels of 36800 next week.

Q) Sectorally, consumption and banking stocks took charge. What led to the price action, however, last week’s star ‘metals’ took some beating? What led to the price action?

A) In the beginning of the week both Banking &amp; FMCG stocks were oversold, hence we had seen a very quick recovery in their prices.

Banking stocks recovered after a very long time as FII’s lower the intensity of their selling, rather on the contrary they start buying in small quantities.

FMCG sector has performed well as crude oil price has cooled- off by 10% since last week.

Q) As India celebrates the festival of Holi – which are your Holi picks for investors for a time period of 9-12 months.

A) In our view both Banking &amp; FMCG sector offers a great value buy opportunity at current levels. Even automobiles can be bought once global commodity prices start cooling off.

Q) The US Fed took the first step in raising rates which were factored in by market participants. But, do you think further rate hikes could impact equity markets or the worst is factored in?

A) Yes, the US fed has started increasing the rate of interest in line with market expectations. In our view, FED will increase the rate of interest by another 1.25% by end of this year. This is partially factored in by markets as of now.

Moreover, in the short-term, markets will be more governed by Russia-Ukraine War news rather than Fed action.

Q) Bulls have taken control of D-Street – do you think these are appropriate levels to invest or long-term investors could wait for a while?

A) In the calendar year 2022, it is difficult to give a target for NIFTY as there is a lot of geo-political &amp; inflation-related risk.

In our view, long-term investors must buy in Banks, FMCG &amp; Automobile sector at every dip. We may have some multi-bagger stocks in this space.

(Disclaimer: The views/suggestions/advice expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)&nbsp;

Amit Jain, Chief Strategist - Global Asset Class, Ashika Group said that we may see the level of 17600 on the Nifty50 next week unless we have some shocking news from the Russia-Ukraine war. Bank NIFTY may test levels of 36800 next week.


Nifty50 could retest 17600 levels next week; banking, FMCG sectors top buys: Amit Jain of Ashika Group

Mehul Kothari AVP – Technical Research, Anand Rathi Shares &amp; Stock Brokers said that there could be a possibility of some profit booking from the zone of 17300 – 17500.

In an interview with Zeebiz's Kshitij Anand, Kothari highlights that in the very short term, traders can book longs and re-enter once we see a meaningful dip while long-term investors can keep holding their positions as the broader structure still remain extremely strong. Edited excerpts:

Q) Bulls took charge of Indian markets this week. Benchmark indices rose over 4% in the holiday-shortened week. What led to the price action?

A) Although truncated but it was a phenomenal week for the bulls on the D - Street. The benchmark indices displayed tremendous strength and posted a recovery of around 4 per cent from the previous week’s close.

The Nifty50 index reclaimed 17,300 mark during the final session of the week amid the easing worries between Russia and Ukraine.

Another reason could be the US Fed meeting which is done and dusted and the cooling-off of the commodities prices especially the crude also supported the sentiment.

The index has recovered over 1600 points from the recent low of 15,671.

Q) The Nifty50 is back above 17000. What is the kind of level you foresee for the index and Nifty Bank in the coming week?

A) Technically, the Nifty50 index is now well above 16,800 mark which was the breakdown zone. In fact, it has now surpassed 17000 mark on Thursday to close above the gap area created on 24th Feb 2022 due to the Russia Ukraine war.

This indicates that the bottom of 15671 is very firm and might not be tested again for some months or so. However, on the upside, Nifty got stuck exactly near 17330 mark which is the 61.8% retracement of the entire fall from 18300 to 15700.

In addition, we have Ichimoku flat line resistance near 17500 mark. Thus, going ahead, there could be a possibility of some profit booking from the zone of 17300 – 17500.

In that scenario, 17000 – 16800 could be the support zone from where the buying could re-emerge.

With regards to NiftyBank – the index has rallied by more than 5 percent for the week ended 17 March. During the process, it has reclaimed 36000 mark on a closing basis from the lows near to 32000 mark.

Thus, it seems that the bottom of 32000 is a strong one and might not get retested soon. Similar to the Nifty index, even the NIFTY BANK index got stuck exactly at 61.8% retracement level of the previous fall.

Thus, for the coming week, 36500 – 37500 could be the zone from where we could witness some profit booking. On the downside, 35000 – 34000 could be an attractive zone to deploy fresh longs.

Q) Sectorally, consumption and banking stocks took charge. What led to the price action, however, last week’s star ‘metals’ took some beating? What led to the price action?

A) Consumption and banking are high weightage sectors from the FII perspective and when we saw FII selling due to risk-off -- these were the natural choices. They were highly oversold and that could be one of the possible reasons for such a sharp recovery in them.

As far as metals are concerned, we have seen a significant run in this space driven by materials prices largely. Recently, we have seen a sharp correction in lot of commodities; hence, the reaction is seen in our Metal space.

Q) As India celebrates the festival of Holi – which are your Holi picks for investors for a time period of 9-12 months.

A) Here is a list of stocks for the long term -

HUL: Buy on dips| LTP Rs 2102| Stop Loss: Rs 1900| Target: Rs 2400| Upside 14%

Being from a defensive space, HUL has not done much in the last many months. On the technical front, it is oversold on larger degree charts.

During the recent fall, it came down to 1900 mark which is the placement of its 200-weeks moving average. The stock has retested this average after 10 – 12 years which indicates that this is a good time to grab the stock for investment.

Traders are advised to buy the stock in the range of 2100 - 2040 with a stop loss of 1900 on a closing basis for the upside potential target of 2400 in the coming 9 to 12 months.

ITC: Buy on dips| LTP Rs 245| Stop Loss: Rs 210| Target: Rs 300| Upside 22%

In our previous interview, we recommended buying ITC near the 220 mark for the upside target of 245. That target of 245 was tested in Thursday’s trading session.

During the process, the stock has confirmed another range breakout above the 240 mark. Further, we have a triple bottom formation on the weekly chart as well near the 200 mark.

Since the counter is defensive in nature, we expect very less volatility in the stock. Thus, traders are advised to buy the stock on dips in the range of 245 - 235 with a stop loss of 210 on closing basis for the upside potential target of 300 in the coming 9 – 12 months.

Kotak Mahindra Bank: Buy on dips| LTP Rs 1819| Stop Loss: Rs 1650| Target: Rs 2100| Upside 15%

Contrary to other private banks like ICICI Bank and Axis Bank, Kotak Bank is yet to undergo a sharp recovery. Technically, it has made a double bottom formation near the 1650 mark.

It has a strong demand near that zone. It seems that the stock has a long way to go from its current levels. Thus, traders are advised to buy the stock in the range of 1820 - 1780 with a stop loss of 1650 on a closing basis for the upside potential target of 2100 in the coming 9 – 12 months.

Q) The US Fed took the first step in raising rates which was factored in by market participants. But, do you think further rate hikes could impact equity markets or the worst is factored in?

A) If the markets had to react to the Fed hike then today was the day. Markets have taken the decision with a pinch of salt and probably factored in further hikes too.

In case of any shake-off, markets would need some other trigger and not the rate hike.

Q) Bulls have taken control of D-Street – do you think these are appropriate level to invest or long-term investors could wait for a while?

A) As mentioned above; since the index has rallied around 1600 points from the low there is a possibility of some profit booking in the coming sessions.

Thus, very short-term traders can book longs and re-enter once we see a meaningful dip. While investors can keep holding their positions as the broader structure still remains extremely strong.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

In an interview with Zeebiz's Kshitij Anand, Kothari highlights that in the very short term, traders can book longs and re-enter once we see a meaningful dip while long-term investors can keep holding their positions as the broader structure still remain extremely strong.&nbsp;


HUL, ITC, Kotak Mahindra Bank top stocks for next Holi; expect 14-22% return: Mehul Kothari of Anand Rathi

Indian market closed with gains of over 1 per cent on Wednesday following positive global cues. The S&amp;P BSE Sensex rose more than 1000 points, while the Nifty50 closed above 16900.

Sectorally, buying was seen in realty, metals, oil &amp; gas and consumer durables. The S&amp;P BSE Small-cap index rose 1.4 per cent, and the S&amp;P BSE Mid-cap index gained 1.8 per cent.

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Stocks that were in focus include Gujarat Ambuja Exports which closed with gains of over 12 per cent, JK Paper rallied nearly 10 per cent and Bharat Dynamics rallied over 6 per cent on Wednesday.

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:

Gujarat Ambuja: Book Profits

The counter is showing strong bullish momentum and it has witnessed a breakout of broadening wedge formation that may lead to further strength towards the 300 level.

On the downside, 243-225 are immediate and strong support levels. It is trading above its all-important moving averages and momentum indicators are also positively poised. However, most of them are heading towards an overbought zone and that may lead to profit booking near the 300-mark.

JK Paper: Profit booking

The counter is witnessing a furious rally after a breakout from a falling wedge formation. The long-term structure is very strong, and the stock may continue to outperform.

However, the near-term chart structure is looking stretched and most of the momentum indicators are in the overbought zone, therefore, a profit booking can't be ruled out from higher levels.

On the downside, the 260-250 area will be the strong demand zone at any pullback.

Bharat Dynamics: Profit booking

The counter is moving in a beautiful upsloping channel formation since September 2020 and currently, it is trading near the higher end of the channel.

Therefore, there is a risk of profit booking around 570 level but if it manages to close above 570 level then we can expect a fresh expansion phase for higher levels.

On the downside, 510-500 will be the immediate support area while 480 will be a strong support level at any correction.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

The S&amp;P BSE Small-cap index rose 1.4 per cent, and the S&amp;P BSE Mid-cap index gained 1.8 per cent.


Buy, Sell or Hold: What should investors do with Gujarat Ambuja, JK Paper and Bharat Dynamics?

Gujarat Ambuja Exports Ltd, involved in the Agro-processing business with dominance in Maize products and Edible oils, rose more than 80 per cent in last one year compared to nearly 14 per cent upside seen in the Nifty50 in the same period.

&nbsp;

The small cap company with a market capitalization of nearly Rs 6000 cr hit a 52-week high of Rs 260.95 on 16 March and technical indicators point towards further upside which could take the stock towards 450 in the next 6-9 months, suggest experts.

&nbsp;

The stock has been a marked outperformer despite muted trend seen in benchmark indices amid the ongoing Russia-Ukraine war. It rose over 17 per cent in a week, and over 34 per cent in a month.

&nbsp;

The vertical upward move seen in the stock led to a breakout on technical charts which projects a higher target of Rs 450 that translates into an upside of over 70 per cent from Rs 260 recorded on 16 March. It hit a 52-week high of Rs 265.45 in intraday.&nbsp;

&nbsp;

In terms of shareholding both FIIs reduced their holding while Mutual Funds holding remain unchanged in the December quarter. FIIs decreased holding from 4.08 per cent in September quarter to 4.06 per cent in December quarter.

&nbsp;

Gujarat Ambuja Exports is a high beta stock and is trading well above the short- and long-term moving averages of 30,50,100 and 200-DMA which is a positive sign.

&nbsp;

[[{"fid":"177684","view_mode":"default","type":"media","link_text":null,"attributes":{"height":478,"width":850,"class":"media-element file-default"}}]]

Earlier, the stock price started its down trend from Rs 155 (April 2018) to Rs 43 (March 2020). The stock traded below averages and super trend also was in a negative mode.

&nbsp;

Value buying followed and the stock started trading above averages with super trend turning to positive mode and made a high of 202 (August 2021).

&nbsp;

“After correcting to 151 (December 2021), recently the stock gave range breakouts and made a high of 244 accompanied by supportive volumes on weekly charts,” Bharat Gala, President - Technical Research, Ventura Securities Ltd, said.

“The breakouts happened above trend line connecting April 2018 to March 22. The Aroon Up/Dwn, ADX &amp;amp; MACD Indicator suggest a firm uptrend,” he said.

&nbsp;

Gala further added that the possible target is Rs 450. If the stock price corrects downwards the buy levels are (225-213)-203-(193-188). A stop loss to be observed in the trade is Rs 167.

&nbsp;

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Gujarat Ambuja Exports Ltd, involved in the Agro-processing business with dominance in Maize products and Edible oils, rose more than 80 per cent in last one year compared to nearly 14 per cent upside seen in the Nifty50 in the same period.


Technical Check: Breakout on weekly charts! This small cap stock from agro space could rally 70% in 6 months

Indian market snapped a 5-day winning streak on Tuesday tracking muted global cues. The S&amp;P BSE Sensex fell over 700 points while the Nifty50 closed with losses of more than 1 per cent. 
 
Sectorally, auto stocks saw some buying interest while selling was seen in metals, oil &amp; gas, energy, and public sector stocks. The S&amp;P BSE Mid-cap index was down 0.6 per cent, and the S&amp;P BSE Small-cap index fell 0.8 per cent. 
&nbsp;

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Stocks that were in focus include Linde India which closed with gains of over 11 per cent, Polyplex Corp closed with gains of over 7 per cent, and Paytm fell more than 12 per cent on Tuesday. 
 
Here's what Vijay Dhanotiya Lead of Technical Research, CapitalVia Global Research Limited, recommends investors should do with these stocks when the market resumes trading today: 
 
Linde India: Buy| Target Rs 3000 
 
Linde India has given a breakout and is trading with positive momentum. We have observed momentum indicators like RSI and MACD which support the momentum. 
 
We recommend investors to buy Linde India above Rs 3,355 with a target of Rs 3,780 and stop-loss can be placed below Rs 3,000. 
 
Polyplex Corp: Buy above Rs 2,160| Target Rs 2250 
 
The stock has been moving in an uptrend which is a positive sign for the bulls. The stock has been trading in an ascending channel. 
 
The stock has reversed from the lower band of the ascending channel. We have observed indicators like MACD and RSI indicating positive momentum. 
 
We recommend investors to buy Polyplex above Rs 2,160 with a target of Rs 2,250. Investors are advised to maintain a stop loss below Rs 1,950. &nbsp; 
 
Paytm: Caution 
 
Paytm continues to trade downward since its debut on the stock exchange. We recommend investors to take a cautious approach towards the stock until we see the positive momentum in the stock.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Indian market snapped a 5-day winning streak on Tuesday tracking muted global cues. The S&amp;P BSE Sensex fell over 700 points while the Nifty50 closed with losses of more than 1 per cent.
&nbsp;


Kshitij Anand