Share Market Tips: Know What will be the Trend of the Market Today, Which shares will give Profit, Expert Strategy. FPI sold Rs 600 crore on Friday but it was due to some other reasons and not due to corona or bond fields. This was to reduce some of the losses elsewhere and they had to do this by booking some profits.
New Delhi: It was a good week for the market, in which we saw the Nifty coming back from a low of 14500 to a psychological level of 15000. However, it closed at 14880. Bond yields and rising corona cases did not prevent the Nifty from returning to the 15000 levels. This has once again proved that these triggers are used by Bayers for their vested interests with the purpose of spreading fear. At the same time, another new ghost has emerged and this is lethargy.
We believe that India will grow at a rate of 14 to 15 percent in FY 2022, beating the RBI and IMF projections, so there is no reason to be upset. The major shorts for the 14200 and 13800 were stuck at 14500 last week, so there was an immediate uptrend and this momentum was led by the metal sector. We believe that the metal index may rise from 20 to 25 from here.
Tesco saw a sharp rise from 700 to 975. However, Tesco slipped to 900 due to some profit booking, but this reason would not help the Bayer Cartel. This will be the result of QE money traveling in metal minerals and resources, as we have mentioned in our previous report.
Please note that as long as the coronavirus continues, the Vaccination QE program will not be discontinued and we believe that at least the next 12 months are not sufficient for full immunization.
Therefore, due to the impact of excess liquidity, the market will see a boom for years. However, controlling inflation will be a challenge for any country, including India. But the commodity cycle will continue to run better due to inflationary pressures.
Dalal Street was once again in talks that the Nifty may come up to 14000 in April. Therefore it is necessary to analyze whether the Nifty may come down to 14000 in April or will make its way towards 15300, 15500 or 15900. Without going into details, prima facie it seems that if the Nifty crosses 15100, it will go up to 15500 in no time.
If you look at the put call ratio, the Nifty PE 33 (revised by NSE) and the market capitalization of 100 per cent and GDP ratio leave a lot of room for growth. We mentioned with logic that there is a good chance of this ratio going up to 120 percent. In the bull run of 2007, we also saw 149 percent. Also, one cannot ignore the fact that the earnings figures of the companies are going to come this month, where the shares can react exactly the opposite.
For example, if the results are good, then there can be a fall and on the other hand, in contrast to the situation in which the results are exceptional. This is due to front running. Insiders are aware of all figures and they make a position before the result to book a profit. At the same time, retailers across the country trade on seeing the results and become fools. You can take a lesson from it. Another reason is that markets follow demand and supply conditions in the short term. At the same time, fundamentals only matter in the long term.
Regardless of the result calendar, we believe that the Nifty will continue for the following reasons:
Full street stocks are long and Nifty has short.
- Nifty PE coming in at 40 to 33 is a big psychological advantage for bulls and investors.
In West Bengal elections so far it seems that BJP is taking the lead. This is positive for political stability and Rajya Sabha majority.
- So far we have seen the impact of the US QE, which is now at $ 17 trillion. We gave Dow’s target of 30000 when it was at 18000 and when it is going to cross 30000, its next target is 36000. After reaching this goal, we will again indicate our goal. The Reserve Bank of India has stated on record that India is doing quantitative easing. Now we will also see the positive trend of DII due to more liquidity. As a change the DII flow became positive after about 12 months, this would reduce the pressure of redemption.
Monsoon is expected to be normal.
The low base of FY 2021 clearly suggests that we will increase 14 to 15 percent in FY 2022, which will keep FPI positive in India.
As mentioned in earlier reports, India will get another $ 50 billion inflow from FPI. We should be prepared for some consolidation on earnings by certain stocks. There will be many stocks, which will announce exceptional results and they will perform better. On this, we have brought a strategy for traders and investors-
Traders should avoid declaration of results. If a good stock like Infosys falls 5 to 8 percent on the result, it can go to lower levels. But keep in mind that the improvement will only come in the next settlement. For example, with the increase in msci weight, Bharti Airtel fell from a low of 619 to 514 in March and then started rising in April. Its current market price is 547 and it is likely that it will surpass the earlier high of 619 in 50 days. This is due to calls and puts, which is a real earning stream of FPIs and large operators. How it works, we have mentioned in previous reports.
Investors follow a model for good stocks. Pick stocks that are still undervalued compared to Nifty and A grade stocks. For example, Orient Cement is running at 13 PE, while Nifty is at 33 PE, so buying a stock with 13 PE can be a miracle. If the fourth quarter remains as expected, the PE for FY 2022 may go below 9. Now again the optional criterion is the book value. If it is below 2, it is good and here it is below 2, so can be invested. There are many stocks that trade at 10 to 18 times the book value. Here we believe that there is a need to switch to shares like Orient Cement. Do check once before deciding to invest in this stock.
According to recent research, tin plates have been found to be a better source of raw materials for lithium batteries. This will reduce costs and increase durability and even longer-lasting batteries can be produced. It can be like a revolution. We should wait for an official announcement in this regard.
The Government of India has announced to spend Rs 10 lakh crore on the chemical sector in the next 4 years. it’s quite big. China is out of the market and America and Europe cannot match Indian prices. Therefore all export-oriented chemical companies should remain on the radar. In fact, the chemical sector is slowly emerging as the IT sector. Therefore it would be beneficial to keep quality chemical stock for the next 5 years. These will give manifold returns. We started a buy call in Oriental Aromatics at Rs 110. Now its price is more than 750 rupees. The effective price will be 3000 rupees, which is 30 times in 10 years.