Nifty has been sideways for the last five to six consecutive sessions. When are we going to really pick up a trend?
Aditya Arora: The market is consolidating with positive bias. Although market is consolidating in a tight range of 22,200 to 22,700, but a lot of midcaps and smallcaps are doing well. A lot of sectors are coming out of that beaten down space where every day it was a red day, but now we see green days.
For almost last five days, markets have built up a fighting spirit wherein a lot of sectors are doing well. Smallcaps and midcaps are also doing well.
So, the bias is positive and the breakout on the index will happen above 22,750 on Nifty on the upside and on the downside the texture could deteriorate only if we break 22,100.
Otherwise, I keep neutral to positive bias on the market and a lot of sectors are doing well. So, although index may be illusionary or it may give an illusion that nothing is happening, but beneath that, a lot of stocks and sectors are doing very well.
So, then elaborate, which is the sector that you think from the beneath is actually performing well, which we are unable to actually identify, but the charts are actually giving you a clear buy signal right now.
Aditya Arora: Yes, clearly few sectors are doing very well. One is pharma sector, which we were just chatting about a while back. And second one is banking is also doing well, NBFC sector is doing well, we are seeing a lot of stocks from that space is doing well. And the third one is metals. So, these three spaces are clear buy on dips candidates, sectors, wherein investors can look for accumulation opportunity or buying opportunity.
Couple of sectors you mentioned there, you also mentioned pharma, which is looking very lucrative on the charts. But any picks from that pack, any counters and buy on dips for now?
Aditya Arora: The first candidate which I have buy from the pharma pack is Dr Reddy’s, which is one of the largest player in pharma also doing well today after a long period of consolidation. So, Dr Reddy’s is buy at 1144, stop loss is 1090, and target is 1200. I also like chemical space. I have a candidate from chemical space, pharma space, Coromandel. This one is a buy at 1882, stop loss is 1780, and the target is 1982.
