2 sectors Aditya Arora is bullish on for near term

Synopsis

I guess one should participate in this bounce back because as I said largecaps are giving good signs right now and if that plays out, then the upside levels which I am watching out for are 23,350 to 23,600.

"We can expect some short-term bounce in the market as we are also going to see Trump peak starting from Monday wherein a lot of new announcements could be made. But on technical front, market is oversold right now, so we can expect a bounce back within a downtrend," says Aditya Arora, Adlytick.

What do you make of this market? Now Nifty hit its seven-month low today. Are we headed for more downtick or are we in the oversold zone? What are the important key levels to watch out for on Nifty?
Aditya Arora: So, in our previous discussion only I had maintained bearish bias wherein the Nifty was trading at 23,700 and now we are trading at the support levels of 23,200. So, at these levels my bias is not very much bearish because 23,000 has acted as important support for the market many times in the past.

So, I believe that the one-way collapse which we saw from 24,200 to 23,200 is like too much in a very short time, so market could take a breather around 23,000 mark.

And moreover important observations are look at Reliance Industries. Although Nifty is down 200 points, but Reliance is just flat. Look at other IT majors also which are almost flat.

So, we can say that market is not falling and all the heavyweights are falling down along with it. So, participation is not there on the downside by heavy counter, so that is a positive side for the market and hence I think market could take support around its important support of 23,000 to 23,200.

We can expect some short-term bounce in the market as we are also going to see Trump peak starting from Monday wherein a lot of new announcements could be made. But on technical front, market is oversold right now, so we can expect a bounce back within a downtrend.

What are the levels that you will be hopeful of and should one participate in this particular bounce back if this happens and where do you see Nifty headed?
Aditya Arora: I guess one should participate in this bounce back because as I said largecaps are giving good signs right now and if that plays out, then the upside levels which I am watching out for are 23,350 to 23,600.

So, in the short time this could play out and in good cases market could also test its important resistance mark which is placed at 24,000 where also 200-day moving average is placed.

So, there could be an attempt to test those levels. If there are good signs from the international market because in next week it is not going to be domestic, it is the international market which is going to decide the trend and all the policies and tweets from Donald Trump will decide the direction for the market.

So, these are the levels 23,400 to 24,000, these are the short-term to little medium-term targets on the upside.

Also, if you look at the sectors, most of the sectors are sitting at their multi-month low. Any buying opportunity that you see in this falling market?
Aditya Arora: Two-three sectors clearly stand out. One is FMCG which has seen its new leadership coming up recently where markets are falling but most of the components are doing well, are holding well and showing good relative strength, so I like this sector. And second sector which I like is Nifty metal index.

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