Energy and metal stocks likely to remain in limelight in April series: Vinit Bolinjkar of Ventura Securities

Vinit Bolinjkar, Head of Research, Ventura Securities Ltd said that the Russia-Ukraine-led crisis came as a trigger for metals and energy stocks as higher realization, due to surge in commodity prices, is expected to generate strong operating profitability.

In an interview with Zeebiz's Kshitij Anand, Bolinjkar picked ICICI Bank, Reliance Industries, Adani Enterprises, and Tata Power as top stocks which are looking attractive for the April series.

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Edited excerpts:

Q) Markets closed with losses of nearly 1% for the week ended 25 March. What led to the price action on D-Street as there was some nervousness in the second half of the week?

A) The Nifty50 was reacting to incremental news flow during the week. A fall in crude oil prices was a breather for the Indian economy, but the hike in fuel prices by OMCs, a third time this week, impacted the market sentiments.

Similarly, the US Fed rate hike, inflationary pressure, and rising bond yields are other key factors. The mix of this positive and negative news flows resulted in a flat performance of the Nifty index.

Q) How do you see markets moving in the last week of March which will also be F&O expiry week. Any important levels that investors should track on Nifty and NiftyBank?

A) The Nifty50 traded lower for most of the session during the week and closed lower on 25th March but still managed to hold the crucial market of 17,000.

Similarly, Bank Nifty traded lower for most of the time and closed above the crucial level of 35,000. It is a positive sign for the next week for a healthy uptrend in the coming sessions.

Q) Sectorally, metals, energy stocks take lead while consumer durable stocks saw selling pressure. What led to the price action? Will metal stocks be in limelight in the April series?

A) Russia-Ukraine-led crisis has escalated commodity prices as Western sanctions have disrupted air and sea shipments of commodities produced and exported by Russia. It has significantly impacted the profitability outlook for consumer durable stocks.

However, the crisis came as a trigger for metals and energy stocks as higher realization, due to surge in commodity prices, is expected to generate strong operating profitability.

Besides, Indian metal companies are expected to get the export market of the banned Russian companies.

The peace talks have failed to make any progress on a resolution to the ongoing conflict between Russia and the Western world.

It is expected to sustain the volatility in the market in the coming weeks. Hence, we expect energy and metal stocks to remain in limelight in April.

Q) What is your view on Tata Tele? The stock rose over 20 per cent in a week. What does the technical suggest?

A) Tata Teleservices raised their prepaid tariffs by around 20% and also preparing to launch the high-speed 5G network and augment the broadband internet services in all villages. This provides very strong revenue visibility in the coming years.

Q) Your 3-4 stocks which are looking attractive for the April series?

A) ICICI Bank, Reliance Industries, Adani Enterprises, and Tata Power are looking attractive for the April series.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)