Which is the favourite index you are tracking closely? Is it smallcap, midcap or is it Nifty, Bank Nifty?
Aditya Arora: The favourite index I am tracking right now is Nifty Pharma Index, which has been outperforming for a while. I think the outperformance will continue because a lot of Covid related news is around the corner. And price action is also confirming the same. We saw good moves in Cipla. We saw good moves in a lot of other pharma counters and today Dr Lal Path Lab is also doing well, Metropolis is also doing well.
Overall the chart structure of a lot of pharma counters have improved. So there is a long way to go over there. On the flip side, a lot of financials or cyclical stocks look to be in the process of topping out. We could see the last leg of the rally in high beta counters just after the Budget. And post that, correction is very likely in a lot of cyclical stocks.
Among the big movers in trade, one stock which comes to mind outright is Indiabulls Housing, a trader favourite just over with rights issue. It appears to be breaking out today. Is it backed on volumes? What are the levels to watch out for?
Aditya Arora: This stock has been outperforming for a very long time. Even when the markets were correcting, this stock was doing well and the derivative data was also pretty positive. Yes, it is volume backed and institutions are also pretty much aggressive in this counter. So Indiabulls Housing Finance looks bullish at Rs 215; Rs 190 is the stop loss and target is Rs 230 to 250.
Out of the midcap IT names, anything you like there?
Aditya Arora: The Infosys charts look pretty decent. Although it is not in midcap IT, I think overall the sector looks a little bit in a consolidation phase. I would like to go with largecaps. So I like Infosys, which is currently trading at Rs 1,670. That could be bought at this price and stop loss should be Rs 1600 and target should be Rs 1,750.
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