Modi tsunami at Dalal street: Time for short term investments?
When asked about why metals and real estate sector might not perform that well, Goenka pointed out the these two sectors have still not recovered from the demonetisation jitters.
NSE Nifty crossed 9100-mark on Tuesday reaching its all-time high after BJP's stellar performance in two out of five state elections last week. Investors feel that this win will give the much needed muscle to Prime Minister Narendra Modi's party in the upper house of the parliament which will help it pass necessary legislation and repair the economy.
At 1020 hours, BSE Sensex was trading at 29,418.55, up 472.32 points or 1.63%, while NSE Nifty was trading at 9,076.25, up 141.70 points or 1.59%.
FOLLOW ALL THE MARKET LIVE UPDATES HERE
Analysts predict that with Nifty crossing 9,100-mark, markets will further see upside in the coming week.
Motilal Oswal, in its report, has said that Nifty index formed a 'Hammer' candle on the daily chart as it recovered well from lower levels. It has been consolidating in between 8860 to 9000 zone from last thirteen trading sessions and is awaiting a decisive range breakout to commence the next leg of rally.
Now, after the positive opening, index requires a hold above 9119 to start a fresh move towards 9250 while 8860 is likely to act as a major support.
Is this the right time to invest?
For short term? Yes.
Amit Goenka, Researcher at Multibaggerstocks.co.in, told Zeebiz, "For short term, mid caps and small caps are going to do particularly well. Consumer stocks mainly. In general overall market is very positive so all sectors are going to perform well maybe except metals and real estate."
Goenka said that technical indicators have shown a breakout in the midcap and smallcap indices.
A bullish trend was seen in both small and midcaps indices during the early trade. Today, S&P BSE MidCap, was trading at 13530.76, up 165.17 points or 1.24%. And, S&P BSE SmallCap, was at 13761.40, up 156.44 points or 1.16%.
Moreover, when asked about why metals and real estate sector might not perform that well, Goenka pointed out the these two sectors have still not recovered from the demonetisation jitters.
"Metals indices have been underperforming for some time lately, including today when every other sector is in green, metals are all in red," Goenka added.
At 1030 hours, Metal sector was trading up just 0.45% or 51.94 points, while Realty sector was 2.31% up with 34.05 points.
Stocks in focus:
As per Goenka, these are the stocks which are likely to be in focus:
IG Petrochemical: Market leader in Phthalic Anhydride (PAN) with strong recognition is listed on NSE. At 1040 hours the shares of the company were trading at Rs 353.80 per piece, up Rs 6.70 or 1.93% on NSE.
Maharashtra Seamless: Steel pipes and tubes maker is listed on both BSE and NSE. At 1040 hours the shares of the company were trading at Rs 356.90 per piece, up 1.02% or Rs 3.60 on BSE.
West Coast Paper Mills Ltd: The company manufactures and supplies various paper products for varied applications and industries such as for printing, writing and packaging. At 1040 hours the shares of the company were trading at Rs 180.90 apiece, up 0.61% or Rs 1.10 on BSE.
NCL Industries: Incorporated in 1979 as the flagship company of the NCL group, produces cement products under the brand name Nagarjuna. At 1040 hours the shares of the company were trading at Rs 162.30 per piece, up 1.12% or Rs 1.80 on BSE.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.