Tell us what are you seeing on the charts? We had the expiry today. Now there is trepidation in the market as we can see but is that on the back of sentiments because we also have seen the market run up now. Is this a breather that the market is taking before the next leg of, runup can be seen and what are the levels to watch out for then?
Aamar Deo Singh: I would say that the markets are definitely very sensitive to the news flows be it the tariffs, earlier it was more of a tariff news flows, but that is the markets are more or less mellowed down and Trump has also to a certain extent pulled back on that.
So, markets are not that much concerned, at least I am talking about the domestic markets, they are not that much concerned. But yes, the recent terror attack in Kashmir that is definitely a cause of concern and there the markets are, I would say, slightly on the cautious side. Though we are not seeing a significant, I would say, shift, so what is likely to happen is that if we look at India VIX because that gives us a first indicator, it has moved up.
There is no doubt about it, it had corrected to almost 14 levels. Currently, it is around 18. So, if we look at the week so far, it is up almost more than 6%, so that is some sort of concern that yes, there is some concern with that regard.
Overall, what we need to understand is that markets have rallied significantly from the recent lows of 22,000 to currently trade around 24,300 plus. So, clearly, that has been a 10% more or less rally and in a very short span of time. So, somewhere or the other stocks are definitely witnessing some profit booking as well.
So, it could be some consolidation at the current level. So, if I look at the major indices, if I look at Nifty, so Nifty has a potential to rally 300-400 points higher towards 24,700, 24,800, that is going to be the next zone of resistance for Nifty, prior to that somewhere around the current level, so somewhere around 24,400 would be the first zone of resistance. If that is taken out, then we could witness a 300-400 point rally in Nifty. And having said that, if I look at the support, so immediate support would be somewhere around the 24,000 level with it being in favour of the bulls until and unless we witness some negative news flow because I have been saying for quite some time that it is right now a buy on dips strategy, but you need to be slightly cautious at the current levels because we witnessed a sharp up move.
In this market, do you have any long positions, any counters that you see value in, any buy calls coming in then?
Aamar Deo Singh: Yes, I would say HDFC Life is definitely one stock one can look at. Today, it has witnessed a good breakout and on significant volume. So, if I look at the stock from the last few weeks in particular, so the stock has witnessed a sharp rally and technically if I look on the charts be the intermediate-term trend, short term as well as the long term, the stock remains strong and firm.
So, this is one stock one can look at buying at the current levels towards 740 odd levels with a target of 778 on the upside. And the next stock to look at is from the pharma space and that is Sun Pharma. What we are seeing is that Sun Pharma did consolidate for quite some time between the 1600 and 1800 level.
We have seen the stock trading around those levels but managing to sustain above the 1800 levels. So, currently, it is around 1830. If I look at the chart, some of the technical indicators on the intermediate term, they have turned positive, so that clearly tells me and the long-term trend is, I would say, not very positive but yes, it is positive with somewhat of a bias.
So, what it means is that we could witness a rally in this stock as well. So, buying at the current levels for a target of 1925 on the upside with a stop loss of 1779.
