MC Interview | 10-15% correction if Nifty closes below 17,900: Mazhar Mohammad of Chartviewindia

Asia's Tech News Daily

#MARKET OUTLOOK, #Nifty, #Sensex, #Technicals

Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia.in feels Bank Nifty is looking very interesting with new highs and a channel breakout which has opened up a higher technical target of 42,000 levels. “Better trades with 2 digit gains which may come from banking space especially PSU Banks if Bank Nifty sustains above 40,000 levels,” he said in an interview to Moneycontrol’s Sunil Shankar Matkar.

On the Nifty50, according to him, a close below 17,900 on the Nifty can trigger a much awaited downswing which can lead to 10-15 percent correction.

Q: Do you think the Nifty can hit 19,000 mark by Diwali after current correction and consolidation?

Medium to long term trend of Nifty is still favouring bulls as momentum backed by liquidity is very high and clearly positively biased in favour of bulls. However, recent sharp correction from the highs of 18,600 appears to have breathed some life into the bears. Nevertheless critical support for this index is placed around 17,900 levels and unless that is broken on a closing basis there still remains a fair chance for bulls to make a comeback.

In that scenario if Nifty manages to get past 18,600 levels then 19,000 can be expected. However, a close below 17,900 can trigger a much awaited downswing which can lead to 10-15 percent correction. As on today if you want me to come out with a downside target for Nifty, on breakdowns, then that will be around 16,870.

Q: Bank Nifty finally crossed the 40,000 mark. Do you expect it to cross the 45,000 mark in a month or so?

As Bank Nifty remained an underperformer for a long time, we believe that it is only a catch up play. So, in case if markets tumble down then it will slip back into an underperforming phase. Meanwhile a noteworthy point about Bank Nifty is the fact that it is moving inside a well defined channel for the last 41 trading sessions and seems to have broken out of that in last session.

Going forward it needs to sustain above the said channel by consistently trading above 40,000 levels. In that scenario, we have a technical target of 42,000 as on date whereas on the downsides, 39,290 should remain critical support. However, to answer your question of 45,000 that possibility can’t be ruled if the current breakout proves to be a stronger one.

Q: What are the sectors which can be in the limelight next week, and why? Also technically what are the sectors that one should stay away from, for the time being and why?

Bank Nifty is looking very interesting with new highs and a channel breakout which has opened up a higher technical target of 42,000 levels. Hence better trading opportunities shall arise from this space. Besides this, all other indices have seen some kind of damage but IT seems to be in a sideways consolidation. Therefore as long as this counter sustains above 34,700 levels some trading opportunities can be isolated from this sector.

Considering disappointing results of Asian Paints, muted response on bourses to HUL results and negative news flows surrounding ITC one can consider avoiding FMCG sector as this index witnessed a price damage of 6 percent last week. Though the BSE Real Estate index is up by around 2.5 percent in the last session this index is still down by around 4.7 percent when compared to last week. So if this index sustains above last Thursday’s low of 3,832 levels then some trading bets can be isolated from this space too. Metals which are down by 5 percent, week-on-week, should be avoided.

Q: Broader markets fell quite sharply in recent corrections. Is it the time to adopt a buy on dips strategy or stay away for the time being?

Recent flash crashes in counters like IRCTC can be the best example of what will be in store if one chases vertical rallies out of greed. As we are all aware of the vertical rise of indices in the last 18 months without meaningful correction it is certainly time for caution rather than looking to buy everything under the Sun with every dip. Nevertheless, at this juncture, some compelling stock specific stories can be looked at for the long term by making use of such corrections.

Q: Can you name a few stocks that look attractive at current levels and can give double digit returns in a month or so? Can you explain technical reasons that can support your advice?

At this point in time we are not comfortable to come out with a multi-month positional trade as Nifty is precariously poised. Correction going forward can be deep and shall get further accentuated if Nifty closes below 17,900 levels. Nevertheless, better trades with 2 digit gains which may come from banking space especially PSU Banks if Bank Nifty sustains above 40,000 levels.

Q: What should investors do with Reliance Industries, Yes Bank and ICICI Bank on Monday?

Reliance Industries price move in the next session is bound to be influenced by the investor perception based on the results outcome. Nevertheless, technically speaking, price behaviour of the last two weeks is looking weak and precarious with indecisive formations. Hence, in the next session if it slips below Rs 2,600 levels then correction shall get accelerated. However, post results if it manages to sustain above Rs 2,600 levels then sideways consolidation in a range of Rs 2,750 – 2,600 can be expected.

Also read – RIL Q2 Result: Profit jumps 46% to Rs 15,479 crore; all businesses witness growth over pre-COVID levels

ICICI Bank is moving in a well defined ascending channel for the last 24 weeks. Hence, it is in need of a fresh breakout above Rs 764 levels. On such a breakout a higher target of Rs 820 can be expected. For time being investors who already own this counter shall hold with a stop below Rs 753 on closing basis whereas a fresh breakout above Rs 764 can be a good opportunity for fresh entry.

Also read – ICICI Bank Q2 Result | Profit grows 30% to Rs 5,511 crore, net NPA lowest since December 2014

In our opinion, Yes Bank is only a contra opportunity with expectations of complete turnaround at some point in future. Therefore retail investors should look for better opportunities available elsewhere in the banking space.

Also read – Yes Bank Q2 results: Profit jumps 74% to Rs 225.50, NII declines 23%

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Audi ties up with Alibaba, Baidu, Tencent for in-car technology as it eyes young Chinese buyers

German luxury car brand Audi has formed tie-ups with several leading mainland technology companies to leverage their strengths and make its vehicles more attractive to Chinese buyers. Giorgio Delucchi, head ... Read more »

Trump social media deal under investigation by US regulators

Former US President Donald Trump was banned from top social media platforms after the Jan 6 attack by his supporters on the US Capitol. BENGALURU/NEW YORK (REUTERS) – Wall Street’s ... Read more »

Always wanted to become Minister of Finance?Seven arguments not to do it

Warning! In the formation of the new cabinet it will be, as they call it in The Hague: ‘doll’ time. Who will be minister? Who stays? Who will get a ... Read more »

10 of Jim Cramer's favorite growth stocks, including Tesla and Affirm

Vehicles sit parked outside the Tesla Inc. solar panel factory in Buffalo, New York, U.S., on Wednesday, Dec. 26, 2018.Andrew Harrer | Bloomberg | Getty Images After CNBC unveiled its ... Read more »

Man who says he invented Bitcoin wins fight over $73.9 billion in the virtual coin

NEW YORK (REUTERS) – A computer scientist who has claimed to be the inventor of Bitcoin largely prevailed on Monday (Dec 6) in a Florida jury trial over whether the ... Read more »

Racial pay gaps are an issue in every industry. Nowhere is it worse than in influencer marketing, a new study says.

Nearly half of Black influencers said in a survey that their race contributes to marketing offers that are below market value, according to the study. Read more »

Jim Cramer says Monday's market bounce may not be finished, stocks can go higher this week

The rally Monday on Wall Street may have more room to run in the very near term, CNBC's Jim Cramer said after the Dow Jones Industrial Average jumped nearly 650 ... Read more »

QT Vascular shareholders vote to reject 5 would-be directors in ongoing board tussle

SINGAPORE (THE BUSINESS TIMES) – Shareholders of Catalist-listed QT Vascula on Monday (Dec 6) rebuffed five would-be directors who were up for a vote in an extraordinary general meeting (EGM) ... Read more »

Pinduoduo, NIO among 27 ADRs which could be eligible for secondary listings in Hong Kong -Goldman report

As many as 27 Chinese-American depositary receipts (ADRs) could be eligible for a secondary listing in Hong Kong, with the city likely to embrace companies that want to come home ... Read more »

Oil rebounds by almost 5% on Omicron hopes, Iran talks

NEW YORK (REUTERS) – Oil prices climbed by nearly 5 per cent on Monday (Dec 6) on hopes the Omicron coronavirus variant would have a less damaging economic impact if ... Read more »

Substantially higher turnover for wholesalers in the third quarter

Photo: ANP Wholesalers and brokerage firms generated almost 17 percent more turnover in the third quarter of this year than in the same period a year ago. However, the confidence ... Read more »

WHO strongly advises against convalescent plasma for treating Covid patients

Blood collection specialist Kathryn Severson holds a bag of convalescent plasma from a recovered coronavirus patient at the Central Seattle Donor Center of Bloodworks Northwest during the coronavirus disease (COVID-19) ... Read more »

Saudi Aramco CEO warns of social unrest if new investment in fossil fuels ends too quickly

Amin Nasser, chief executive officer of Saudi Aramco, gestures as he speaks during a panel session on day three of the World Economic Forum (WEF) in Davos, Switzerland, on Thursday, ... Read more »

Campaign launched to promote digital IDs Platform could have several valuable uses

ETDA is accelerating efforts to improve people’s quality of life through digital tech adoption, says Mr Chaichana. The Electronic Transactions Development Agency (ETDA) has launched a campaign to promote the ... Read more »

It Was a Pretty Good Year in Car Business -- Except for Suppliers Auto-parts suppliers faced myriad cost pressures and largely missed out on industry's heady pricing

Peter Anthony, the head of a Chicago-area auto supplier, has spent much of this year feeling left on the sidelines in an industry delivering solid profits to car makers and ... Read more »

Kohl's Urged to Consider Sale by Activist Investor Activist Engine Capital sends letter also pressing department-store chain to consider a separation of its e-commerce business

Kohl’s in November reported better-than-expected fiscal third-quarter earnings and raised its full-year guidance. Getty Images/AFP An activist investor is urging department-store chain Kohl's Corp. to consider a sale of the company ... Read more »

Asia Biomass banking on shift to greener strategy

Growing concern over greenhouse gas emissions and a business diversification plan are expected to benefit Asia Biomass Plc (ABM), Thailand's largest biomass fuel trader and producer, as its revenue is ... Read more »

Customs mulls non-tariff rule for cheap imports

The Customs Department plans to introduce a non-tariff measure to bridge the disparity between low-priced goods shipped into Thailand that are tax-exempt and goods locally produced by small and medium-sized ... Read more »

Local unicorn trio prove naysayers wrong Timing and developing a market niche helped all three, writes Nuntawun Polkuamdee

Mr Komsan started Flash Express in 2018 with 400 million baht. Within five years, Mr Komsan wants Flash to be a regional top-three firm in the logistics business and targets ... Read more »

The new financial tribes Thai consumers enthusiastic adopters of new digital financial products and services, says financial software specialist Mambu

Some 93% of Thai banking customers say the availability of online or digital services through their bank is important, according to a new report by Mambu, a digital financial services ... Read more »

Luxury car market tabbed for double-digit growth in 2021

The luxury car market in Thailand is expected to keep expanding with double-digit growth this year, despite the impact of lockdown measures implemented to contain the spread of Covid-19. Demand ... Read more »

Volvo urges focus on mass market for EVs Incentives needed for Thais to purchase

The latest car models including electric cars are displayed at this year’s Motor Expo. Pattarapong Chatpattarasill Volvo Cars (Thailand) wants the Thai government to strike a balance between aiming to become ... Read more »

Course operator taps into growing interest in golf

A small three-metre deep potted bunker, called ‘Big Ass,’ at the 18th hole is a highlight of Siam Country Club Bangkok, a new golf course on Bang Na-Trat KM 22 ... Read more »

Squid Game and Parasite tap into public anger over unaffordable housing

Since the Covid-19 pandemic erupted, house prices the world over have gone through the roof. In the fourth quarter of 2019, just before the virus began to spread like wildfire, ... Read more »

Foreign demand still tepid Rebuilding the international tourism market will likely take years, writes Dusida Worrachaddejchai

Foreign tourists arrive at Suvarnabhumi airport on the first day of the country’s reopening, Nov 1. REUTERS The country's reopening on Nov 1 marked the first step towards rebuilding the battered ... Read more »

Starbucks Reserve Roastery Tokyo now serving caramel cappuccino spiked with rum

Kinema Cappuccino contains rum and is topped with caramel popcorn and craft caramel sauce for a touch of texture and sweetness. The Starbucks Reserve Roastery in Tokyo is now serving ... Read more »

Employing an illegal courier? In Belgium, the Public Prosecution Service closes the depot

When the inspectors enter the depot of the postal company GLS in Puurs (a town south-east of Antwerp), the young men reach for their mobile phones at the assembly line ... Read more »

Wall Street closes sharply higher, Omikron worries put aside for a while

Stock markets in New York closed on Monday with significant gains. Investors on Wall Street briefly suppressed concerns about the Omikron variant of the coronavirus and its impact on the ... Read more »

Biden touts savings on insulin and other drugs for Americans

The Associated PressPresident Joe Biden talks with Iesha Meza, who introduced Biden to speak, in the East Room of the White House in Washington, Monday, Dec. 6, 2021. Biden talked ... Read more »

Suntory develops 100% plant-based PET bottle

Suntory, which produces the Orangina brand in Europe and its best-selling bottled mineral water brand in Japan, Suntory Tennensui, aims to use 100 percent sustainable PET bottles globally by 2030. The ... Read more »

Toyota joins race to build batteries in the U.S. 

Automakers want to move battery production as close as possible to their assembly plants, especially now that the supply chain has become a problem. Read more »

Nevada Judge tasked to define what makes Definition of 'Mexican' food in chopped salads dispute

Chop Stop insists that its Viva Mexico Chop salad is not Mexican . A US judge has been tasked to decide what makes cuisine “Mexican” in a Nevada lawsuit that ... Read more »

Delta, Kohl's rise; Moderna, AST SpaceMobile fall

Stocks that traded heavily or had substantial price changes Monday: Del Taco Restaurants Inc., up $4.98 to $12.51. Jack in the Box is paying a big premium to buy the ... Read more »

Wall Street closes up as easing in virus fears aids rebound

NEW YORK (REUTERS) – Wall Street’s major averages closed higher on Monday (Dec 6) with economically sensitive sectors and travel-related stocks soaring as investors were encouraged by some optimistic comments ... Read more »

More and more people in their twenties still live at home, and that is not only due to the housing shortage

Always on demand, a tidy house and ready food every day: when Janis Dek (26) started her first job as an assistant disabled person, she thought it was fine to ... Read more »

Toyota chooses North Carolina to build large battery factory

Photo: ANP Japanese car group Toyota Motor has chosen the US state of North Carolina to build its first electric car battery plant in the United States. The plant will ... Read more »

‘Fat King' gets two years in prison after biodiesel fraud Financial

His company mainly converted frying and waste fats into biodiesel. According to the Amsterdam court, it has been proven that B., known in his sector as the ‘fat king’, committed ... Read more »

Union Pacific railroad works to cut its carbon emissions

The Associated PressFILE – The crew on a Union Pacific freight train works at a siding, Friday, Jan. 24, 2020, south of Tucson, Ariz. Union Pacific railroad plans to expand ... Read more »

Boeing, travel stocks surge as investors shrug off omicron concerns

An American Airlines passenger jet approaches to land at LAX during the outbreak of the coronavirus disease (COVID-19) in Los Angeles, California, April 7, 2021.Mike Blake | Reuters Boeing, airlines ... Read more »

US oil companies see demand for fossil fuels for a long time to come

Photo: ANP The top executives of major US oil companies expect demand for fossil fuels to continue for decades to come, despite the transition to renewable energy sources. That was ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic