Nifty Stalls At 25,500 GST 2.0 Fuels Autos, FMCG IT Faces H-1B Heat  F&O Trade Setup - video Dailymotion

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00:00its strategy. Yeah, first of all, happy Navratri to all of you guys and all the viewers of ET Now.

00:04It was a happening weekend, you know, with all the news flow surrounding the H1B visa.

00:09But I think, you know, the markets are poised, we were discussing this on Friday

00:13session also, that the markets are poised, you know, at a zone where it requires some bit of

00:18a breather or a consolidation. You know, we were seeing that 25,000 to 25,500 broadly could act as

00:24a trading range for the Nifty and 25,500 mark is where we've seen, you know, some resistance

00:30coming back in from the call writers. So, I think that's where we've managed to take resistance

00:34for the indices. I don't see a major, major correction happening to the indices over the

00:40very near term. Yes, there could be fewer sector churns which could happen with the state of news

00:44flow which has, you know, come across over this weekend. But I think largely, it should just about,

00:50you know, be the index consolidating, just drifting down lower, coming back towards,

00:53you know, maybe a 20-day moving average or a shorter mean for the Nifty over the very near term.

00:59I believe that if in case we settle down at 25,050, 25,100 on the Nifty spot levels,

01:06that I believe could be a very good contrapoint to start initiating fresh longs on the index,

01:11purely in terms of risk reward. Right, okay. So, that's the market setup

01:15view coming in from Kunal. But Kunal, you know, today, other than the entire IT space,

01:20you will have a lot of these GST beneficiaries that will once again be in focus, your autos,

01:24insurance, FMCG. Do you believe the market has largely priced in everything that was supposed

01:29to be priced in and today we could see a subdued move? Or do you expect renewed excitement,

01:34at least for today in some of these sectors?

01:35I think it's a very interesting question because there could be multiple things which could happen.

01:39You know, over the last one week, we've seen auto stocks receding a bit. Right.

01:42So, there could be a point where because the pressure comes back into the IT stocks,

01:46the auto stocks would start to come back into, you know, a slight bit of an outperformance over

01:50there or at least show that, you know, resilience nature which was missing over the last one week.

01:55And then there could be, you know, offset which could come back into the other sector. So,

01:58you know, generally we've seen that the index goes into a balanced approach

02:02when you see one sector getting a very skewed kind of a price action. So, my expectation is that

02:07because post the IT, the heavyweight sector, the IT is financials or banks. So, I think in that

02:13sense, I would probably expect that the banks and the financials could start to show some bit of

02:17resilience and outperformance. And then you have already seen recovery for many of the PSU names.

02:23The most interesting data is even till Friday, I think it was eighth consecutive day of an open

02:28interest reduction for the index futures, specifically for Bank 50. So, it tells you that

02:32the shorts are taking their positions out from the banking index. And then, you know, that I believe

02:38could be a positive stance. So, with the new school which has come across over the weekend

02:42and Navaratri and GST, you know, kick us starting off from today onwards, I think it should aid the

02:48other sectors. Maybe, I think few of the sectors like IT could remain under pressure for some more time.

02:52Kunal, so just to understand this better, you are saying that the other sectors like

02:56financials or something could do better today because largely IT could be in pressure.

02:59Yes, because when the index has to balance, if one sector gets into a lot of pressure,

03:03then the other sectors, they play their own part in terms of just trying to protect the markets

03:06and not break those key levels.

03:08Oh indeed, Kunal. But specifically on the IT space, Kunal, some of these heavyweights like TCS,

03:15Infosys, they are expected to be hammered. Of course, we know the news flow about the hike in the H1B

03:21visa hike but even that clarification is giving some bit of a breather where analysts expect that

03:26FY27 onwards where the impact will be. What's your take on the stocks like TCS, Infosys and

03:34Emphasis to start with? Even I became a fundamental analyst over the last weekend because I had to

03:38see a lot of data points of how this could impact for many of these IT companies. As an opportunistic,

03:44I think over here, one has to look out for those opportunities of extremes.

03:49So, in case if the reaction at the start is extreme for few of the large-cap IT stocks,

03:54then I believe that that could be an opportunity. If it's maybe a 2% kind of a gap down, say broadly

04:00for many of these IT names, I don't see a major opportunity arising over here because then maybe

04:05the markets could have factored in the news flow. But if it's in case more than 5% or 10% drop down for

04:11many of these IT companies, that I believe could probably throw in an opportunity. So,

04:14you have to be a lot more specific with the kind of opportunities the markets throws post-EOP.

04:19Okay, so that's the date coming in on some of these IT stocks.

Nifty Stalls At 25,500 GST 2.0 Fuels Autos, FMCG IT Faces H-1B Heat F&O Trade Setup

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