Definitely, a good session on the markets today. But having said that, what is on your radar and how is the market looking according to you?
Rahul Sharma: Well, Nifty is in the consolidation. We are not really going anywhere since last few sessions, but the undertone of the market still remains bullish. If we look at the midcap select index, this index has gone on to hit a new high, indicating that the broader market is still in good shape.
So, Nifty after the big move that we saw like a few days back, it has been consolidating after that. Sooner than later, we feel that Nifty will aim for the new all-time high, possibly 26,500 in the July series. So, from a positional perspective, the outlook is bullish and in case there is a dip, which is in case we see Nifty heading towards 25,200, 25,300 that could be a good re-entry point. With 25,000 as the base established for the series, we feel that the risk-reward will become very favourable in case that happens.
So, the outlook is positive, like you were discussing about the pharma index. So yes, pharma is one index which is coming out of a multi-month consolidation. So, there are multiple tops on the pharma index around the 22,200 area which it is trying to take out in today’s session and this should be a successful attempt.
And over the next couple of months, we see pharma index go up by around 5% to 8% from the current price levels and pharma stocks to do well, especially the old economy pharma stocks like Sun Pharma, the likes of Divi’s Labs, something like a Biocon can also do well. So, pharma as a pack looks good and overall, the outlook on the market remains bullish from current setup.
Help us understand what are the stock-wise opportunities which are on your radar.
Rahul Sharma: So, last week on this same show we had recommended two stocks one from the metal pack, Hindalco, another one Reliance, both of them are doing good over the last five trading sessions. And today, the focus continues on the metal pack. Today, we are recommending National Aluminium which looks good from a trading perspective. We are expecting a short-term target of Rs 210 from current levels, can be bought with the stop loss placed at 188. The second one is a big one because we also have the results lined up on the 10th of July, and speaking of TCS, the IT index heavyweight, TCS can be bought at these levels. The risk-reward is extremely favourable. The stock is broadly consolidating since last 10-15 trading sessions around the 3400, 3500 mark. So, one can look to buy TCS at these levels. Stop loss placed at 3370 and I feel 3600 is a very much possibility by next week. So, from a short-term perspective, one can look to buy National Aluminium and TCS.