Amit Jain, Chief Strategist - Global Asset Class, Ashika Group said that we may see the level of 17600 on the Nifty50 next week unless we have some shocking news from the Russia-Ukraine war. Bank NIFTY may test levels of 36800 next week.

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In an interview with Zeebiz's Kshitij Anand, Jain said that Banking & FMCG sector offers a great value buy opportunity at current levels. Even automobiles can be bought once global commodity prices start cooling off. 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) In our view markets are up 4% this week due to the declining intensity of FII selling & partial short covering. Beginning this week, markets were in oversold territory, hence there was supposed to be a technical bounce back, which happened.

Also, positive assembly election results in favour of BJP further build the confidence of investors in the ruling government.

Image: Amit Jain, Chief Strategist - Global Asset Class, Ashika Group

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

A) Yes, Nifty is above 17000 now, in my view next week, we may see the level of 17600 unless we have some shocking news from the Russia-Ukraine war. Also Bank NIFTY may test levels of 36800 next week.

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) In the beginning of the week both Banking & FMCG stocks were oversold, hence we had seen a very quick recovery in their prices.

Banking stocks recovered after a very long time as FII’s lower the intensity of their selling, rather on the contrary they start buying in small quantities.

FMCG sector has performed well as crude oil price has cooled- off by 10% since last week.

Q) As India celebrates the festival of Holi – which are your Holi picks for investors for a time period of 9-12 months.

A) In our view both Banking & FMCG sector offers a great value buy opportunity at current levels. Even automobiles can be bought once global commodity prices start cooling off.

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) Yes, the US fed has started increasing the rate of interest in line with market expectations. In our view, FED will increase the rate of interest by another 1.25% by end of this year. This is partially factored in by markets as of now.

Moreover, in the short-term, markets will be more governed by Russia-Ukraine War news rather than Fed action.

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

A) In the calendar year 2022, it is difficult to give a target for NIFTY as there is a lot of geo-political & inflation-related risk.

In our view, long-term investors must buy in Banks, FMCG & Automobile sector at every dip. We may have some multi-bagger stocks in this space.

(Disclaimer: The views/suggestions/advice 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.)