We have already crossed that 25,200 mark. What are the next key support and resistance levels you are tracking for the Nifty and Nifty Bank before discussing other sectors?
Rohit Srivastava: We all are watching just the previous highs. But if I use some trend channels, we will be watching 25,230 and once we cross 25,230, then we should probably accelerate towards 25,800. That should add another 600 points from here once we get past that level. Now, as far as Bank Nifty is concerned, hopefully it manages to hold on to the gains that it is making right now and if it does that and we close positive, then we are set up to move towards 57,845 and 58,460, so that should also therefore add up further once we see that.
Now that we have managed to break above those 25,200 levels, we do see a bullish trend taking shape. In this market, what are the pockets of value? What are the sectors that you are bullish on and if there are any buy calls coming from you?
Rohit Srivastava: The sector that we like most and that has the best value is financials. So, financials stand out from the start of this year to date and are likely to stay in that zone for the rest of the year. It is pretty clear that financials will be leading the way. And within financials, I would really like the NBFCs and that is the focus area. We cannot name any particular stocks but that is the place to be.
The second one after that will be PSU banks followed by private banks. That is the sort of importance we will give each within the financials, but financials as a whole are going to be outperforming for the year. The second place to really consider is PSUs all over again and when we say PSUs and we look at the PSU index, we are looking at a broad range of sectors that come there because many of these stocks continue to remain in value after the recent correction in oil marketing, metals, construction or capital goods. There is a whole lot of mix within PSU but they all have good value out there and which is where you would want to look at.
The third one, which is the emerging sector for the year, is going to be metals. In metals, valuations are not very stretched. We are all looking for the commodity cycle to kick in and that is happening very slowly. It is happening on a segment by segment basis. We have only seen gold and silver do extremely well. Copper is holding out. We are still not seeing a pick up in things like aluminium, zinc, nickel, etc. But they are all set up to do that at some point of time and we are starting to see early signs of that momentum, especially in oil which had really been beaten down.
We are starting to see some momentum come back to oil as well. So, commodities as a whole, which is where the metal sector comes in, should also do well in the coming year.
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