Even though we cracked that gaining streak, we are back up towards 13,700, regaining momentum during the week.
After almost seven weeks of boring and consistent uptick, there was finally some bit of activity and volatility that came by in the week gone by. At the end of it, when you look at the index performance, it is absolutely fine that the Nifty closed with a mild flattish to negative kind of a tone. But, the recovery path that we saw in the last two days, especially for this short week, was something spectacular.
We saw a lot of textures for the markets improving quite well. The Nifty IT index managed to make a roaring comeback after almost two-and-a-half months of sideways price action. Many individual pharma stocks also managed to look quite strong. You had Reliance also trying to make a good comeback. It almost tested the Rs 2000-mark for the third time this week.
So, there were a lot of positives for the markets this week. Net-net, we closed flat. There was some resilience even from the Bank Nifty, which I believe is going to be a key for the Nifty to try and take charge yet again. So all in all, I believe it was a very interesting week. The volatility that we saw was a bit different from what we have been accustomed to since the past six-seven weeks. But when you look at the Nifty closing above 13,500-mark yet again and the Bank Nifty closing above 30,000, 30,500 levels, it was quite a positive move for the index.
What really stood out for you? We had pockets of real estate stocks that were back in focus. Is there anything else that you found particularly attractive in the week gone by?
Yes, there were a lot of stocks on the real estate pack which buzzed up quite well. After that big spike up which we saw on DLF (a single day move of 10-12% two weeks back), the stock has remained subdued. But there are other stocks as well. I was looking at Kolte-Patil. It was one of the stocks that had two days of consecutive 8-9% price uptick and then a subdued session on Thursday.
Godrej properties has been another stock which has been a talking point. I think the stock has done extremely well for itself over the last six months of this price recovery. Oberoi Realty is also another stock that from the non-F&O space has done extremely well.
So many of these high beta pockets are coming back and there is a lot of demand which is coming back into these names. There is a very strong sign.
Look at Godrej Properties. If I am not wrong, it is almost up 14-15% so far this month itself.
DLF is also up 14% or 15%. So in that regard, there are lots of positives for the real estate pack. I believe that DLF could be a good trading play as well as investment play. If the stock trades above the Rs 200-mark or continues to trade above the Rs 200-mark, there should be a lot of strength that could be coming by. I would not be surprised if the stock comes back to three-four-year high, which was around Rs 275 or Rs 280 levels. So that is one stock that from a high-risk category someone should be looking at.
Keep an eye on the week ahead, what would be some of your stock picks?
I will continue to have a bullish bias on individual names. From the pharma pack, the first stock that looks attractive is Cipla. The stock has come back to the Rs 800-mark after a while. In fact, this week was a very fruitful week for Cipla and now the stock is on the verge of completing a bullish flag pattern breakout. It is a very strong breakout for Cipla. So, I would suggest this as a first buy call. Weekly targets could be kept at Rs 875 and stop loss could be kept at Rs 810-mark.
ICICI Lombard is the other stock and it has an interesting chart pattern as well. One month of sideways price action from Rs 1,500 to Rs 1,520 to almost Rs 1,420. So it has completed a retracement and then a pattern of lower highs and lower lows. Now the stock is getting towards a breakout of this downward sloping pattern. So, I would expect ICICI Lombard also to try and pick up pace over the next one or two weeks. I would suggest a buy with a positional target of Rs 1,550 and stop loss could be kept at Rs 1,450-mark.