As we enter the final weeks of 2024, there are no known major catalysts for the market, other than this week’s Fed FOMC meeting. What trades does the chart suggest and how should traders/investors prepare?
After a sharp recovery from the recent lows seen on November 21st, the market has calmed down over the past few weeks. Overall, there is a lack of clear triggers behind the decline in FIIs, but it seems to have weakened recently, as well as the slowdown in corporate profits and the impact of inflation. Concerns, bullish momentum in the US stock market are some of the factors influencing the market.
Overall, Nifty seems to have strong support near its recent lows, with 23,200-23,400 acting as a short-term bottom, while upside resistance is seen around the 24,800-25,000 zone. Short-term bias favors the bulls, but investors should remain cautious as investors focus on the Federal Reserve’s FOMC meeting scheduled for later this week. be advised.
What is the level of Nifty and Bank Nifty?
Both the Nifty and Bank Nifty benchmark indices have shown resilience of late, with bulls looking to gain the upper hand following a sharp correction in both indexes from their record highs hit in the last week of September.
While Nifty is down 4% this quarter, Bank Nifty is up 1.14%, clearly showing that bank stocks are outperforming compared to other sectors. Going forward, for Nifty to move meaningfully higher, it needs to sustain the 25,000 level towards the next target level of 25,400.
Bank Nifty, on the other hand, sees support near the 52,300-52,500 zone while it has immediate resistance near the 53,800-54,000 mark. Despite all the headwinds and issues that experts and industry insiders cite from time to time, the IT sector’s 37% return is still double that of the Nifty. What do you think of the sector in 2024? If you had to pick an IT stock in 2025, which one would it be?
The rise in the Nifty IT index this year has been impressive, rising 7% in December itself and continuing to hit new all-time highs. Almost all IT stocks have soared this month, with industry giant Infosys outperforming TCS. Reversing concerns after Trump’s re-election, an improving US economy and a weaker rupee appear to be making the IT sector even more attractive to investors. Overall, this field has withstood the test of time and is expected to remain at the forefront in 2025. The only thing that could upset the apple cart would be a major recession in the US economy. At current levels, investors would be wise to wait for a correction for new entry.
Private banks have performed poorly this year, and investors are now pinning their hopes on a rate cut in February. If you have a short-term outlook, i.e. 2-3 months, should you include top banks in your portfolio?
At a time when overall growth in the Indian economy is slowing and major concerns are raised about the widening imbalance between credit and deposit growth, competition among banks to shore up deposits will increase overall profitability in the medium to long term. likely to affect sexuality. semester.
Overall, the banking sector has experienced rapid growth over the past few years, but the years ahead could be challenging to say the least. However, major private sector banks such as ICICI Bank and HDFC Bank have very few stocks that can form part of an investor’s long-term portfolio. However, from a short-term perspective, investors are advised to be cautious as we may see price movements based on central bank events from both the RBI and the US Fed.
India’s GDP has fallen to its lowest level in seven quarters, with significant challenges related to domestic consumption being heard, reflected in the performance of FMCG stocks. Is that a no-go area in the near to medium term, or do you see a correction as a buying opportunity given the current decline in valuations?
Most of the FMCG stocks like Britannia, Hindustan Unilever, ITC, Nestle India, Tata Consumers, Colgate Palmolive, Dabur, Godrej Consumer Products etc. We are experiencing a price correction and obviously the demand in this sector is weaker overall as a result of the slowdown in the Indian economy.
Most FMCG stocks have seen significant valuation declines, and investors may want to take a closer look at some of them over the long term. Given the pronounced slowdown across various industry segments, waiting for India’s GDP growth, ideally this quarter, should be considered as a key data point in the near-to-medium term.
While ITI, Delhi Belly and Jupiter Wagon grabbed attention with big gains, GCPL and Honasa were among the worst losers? What should investors do about them?
ITI, Delhivery and Jupiter Wagons clearly rewarded their shareholders with WoW gains of 12%, 10% and 13% respectively. Support for ITI is near the 320 level while resistance is near the 400 mark, allowing investors in ITI to lock in some of the profits and keep the rest. Investors in Delhi Belly and Jupiter Wagon can also lock in some of the profits and chase the rest below 430 and 520, respectively, as these are important support levels.
On the losing side, GCPL fell 10% and Honasa WoW fell 7% due to selling pressure. Investors can maintain their position in GCPL due to the important support found around the 1,050-1,070 zone and an uptrend that will only materialize if the stock price rises above the 1,200-1,220 mark. Honasa is clearly on a downtrend and is about to form a bottom with important support found around the 220 mark. Investors can hold on to the stock as long as it doesn’t break above this level, and the stock needs to stay between 280 and 290 for meaningful upside to occur.
(Disclaimer: Recommendations, suggestions, views and opinions by experts are their own. They do not represent the views of Economic Times)
