Investors to look for the entry in the infrastructure and reality stocks: Amrapali Aadya Trading & Investments

Mr. Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments

Taking positive cues from the Asian market along with help of index heavyweights like RIL, L&T and ICICI Bank, Nifty made life time high on Monday. Further, rising hopes of GST bill to rollout in July and finance minister higher than expected GDP growth estimates bring the enthusiasm in the market. Also, manufacturing PMI touched to a five months high in March amid stronger rise in production and new business orders. Finally the day of RBI monetary policy came and RBI governor decided to keep the repo rates unchanged in its first bi-monthly policy of new financial year, keeping in mind to bring down headline inflation and combat rising global oil and commodity prices. Shockingly, fag end of Friday trading session went under the geopolitical tension, which spooked market to reel under pressure amid rising worries in Syria. Since we know that corporate earnings season will be starting from the next week, hence it would be interesting to watch companies' performance in the past as well demonetization impact. From the index heavyweights, Infosys shall come with its quarterly earnings first followed by HDFC Bank. Further, several macroeconomic data i.e. Indian Industrial Production (IIP), manufacturing production and inflation data figures are expected in the coming week. We believe benchmark indices to take cues from the corporate earnings and macroeconomic data and behave accordingly. Though, indices are already trading at high and for further rerating or downgrade to happen for the benchmark, we need to wait for results to turn out. Hence, we foresee indices to remain consolidating at current level. We advise investors to look for the entry in the infrastructure and reality stocks.

We expect subdued trade on the coming week and profit booking to continue. Higher side is seemed cap around 9270 and on the down side Nifty could find resistance around 9080 which happens to be its 20DMA. On the daily chart Nifty 50 formed a bearish candlestick on Friday closing followed by hanging man on Thursday which confirms a reversal of current bull run.

Source : Equity Bulls

Keywords