Metals took breather last week due to profit taking and fall in geopolitical hostilities: Deepak Jasani of HDFC Securities

Deepak Jasani, Head of Retail Research, HDFC Securities said that the erstwhile leading sector Metals took a break due to profit-taking and fall in geopolitical hostilities while Banks and consumer sectors caught up on relative valuations.

In an interview with Zeebiz's Kshitij Anand, Jasani highlights that the Nifty50 can range trade between 17639 to 16988, while Bank Nifty could trade between 37318 to 35804. Edited excerpts:

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Q) Bulls took charge of Indian markets this week. Benchmark indices rose over 4% in the holiday-shortened week. What led to the price action?

A) The seeming reduction in the intensity of current concerns (war, crude oil prices etc) led to a fall in selling pressure across the globe and deployment of cash into equities by investors who were waiting on the sidelines.

Foreign Portfolio Investors (FPIs) turned buyers toward the end of the week and small and midcap stocks started to participate in the upmove reflecting better sentiments among retail investors.

Q) The Nifty50 is back above 17000. What is the kind of level you foresee for the index and NiftyBank in the coming week?

A) Nifty can range trade between 17639 to 16988, while Bank Nifty could trade between 37318 to 35804.

Q) Sectorally, consumption and banking stocks took charge. What led to the price action, however, last week’s star ‘metals’ took some beating? What led to the price action?

A) The erstwhile leading sector Metals took a break due to profit-taking and fall in geopolitical hostilities while Banks and consumer sectors caught up on relative valuations.

Q) The US Fed took the first step in raising rates which were factored in by market participants. But, do you think further rate hikes could impact equity markets or the worst is factored in?

A) While the 25 bps rate hike was in line with most expectations, any indication of a faster hike in the next meet and expectation of a faster than expected reduction in the Fed Balance sheet could dampen sentiments.

Q) Bulls have taken control of D-Street – do you think these are appropriate level to invest or long-term investors could wait for a while?

A) For people who are under-invested in equities, they can start investing in Nifty stocks or other stocks where they have done enough study, in a gradual manner.

People who are fully or close to fully invested can wait for a decent correction before committing further funds. In fact, they can look to raise some cash in the ensuing rally.

(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.)