Will the rally in stock market continue or fizzle out? Nifty to Bank Nifty, check out experts views

For all those investors looking to find out where the stock market is headed and which segments are bound for glory, before they take their calls, here is some information that will hold them in good stead. Today, Nifty has closed above 11500 today due to a strong rally in IT and Pharma sectors and importantly, Dow Futures indicate strong start to US markets too. We speak to Zee Business experts and they reveal what is likely in store going forward:

Rakesh Bansal, VP, RK Global

Rakesh sees strong resistance of 11600 on Nifty 50 and 22700 on Bank Nifty. If 11600 levels are taken out in markets in the short term, then we may see massive short covering in the markets. The support for the market is around 11200-11300 levels. He believes the market is not in a trading range anymore.

He says that “Covid-19 has provided an accelerated growth in Pharma and IT sectors. Investors should focus on only these two sectors. Metals sector is more of a trading bet in the current scenario.”

Sumeet Bagadia, Executive Director at Choice Broking

Sumeet believes markets are heading higher from current levels. 11550-11600 will act as a strong resistance for the market. In case 11600 is taken out meaningfully then we can see 11800 in a week’s time. Nifty can trade in range from 11450 levels to 11550-11600, while 11400 will act as a strong support.

He added, “Would prefer to invest in Pharma, IT and Metals sectors over other sectors - if markets sustain above 11800 then Banking and financial sector will also participate in the rally.”

Vishal Wagh, Research Head of Bonanza Portfolio

Vishal believes 11618.1 will act as strong resistance in the market. Markets have created a “Shooting star pattern” today which indicates markets are in an indecisive mode from here on. 11200 / 11350 is 20 day moving average and 50 day moving average, while 10800 is 200 day moving average on Nifty. He sees major shifting of funds is happening to large caps from mid caps and small caps. Market will remain volatile till the outcome of U.S. elections. Heavyweights on Nifty will move for the next few days and volumes will remain low.

He adds “Bullish on IT, Pharma and FMCG sectors. FMCG sector can bounce back strongly from here on. Due to margin issues going on in the market, there are low volumes in the market currently.

(By Rahul Kamdar)