“It is not for the intraday or one or two-days trade, but positionally if we were to see, they are likely to do well in the coming times and overall capital market theme is likely to do well from here,” says Vinay Rajani, HDFC Securities.

Well, the market is very sideways. The action is really in individual names. So, let us talk about those. Angel One, Motilal Oswal, what is the view?
Vinay Rajani: Yes, the entire capital market theme is doing good, not only because of the Angel One’s result, which happens to be very good, but previous trend was also positive. Motilal Oswal recently hit an all-time high. And today, after the Angel One’s result, it has registered a follow-up buying. So, entire space has been doing good. If you see the brokers, the AMCs, these all stocks have been performing very well. So, entire capital market theme has been doing good and they are in the continuation of an uptrend and momentum is there. So, this is the space which is likely to outperform because news are coming positive, technicals are setting up very good. So, this may continue in the coming times. Though the stock like Angel One has gone up by 14% in intraday session, Motilal is up by 10%. But on dips, definitely one can look at it. So, it is not for the intraday or one or two-days trade, but positionally if we were to see, they are likely to do well in the coming times and overall capital market theme is likely to do well from here.

How is the auto sector looking like because the early trends are suggesting that the first 10 days of festive period was not that great. Anything on the technical side, how is the auto index looking like?
Vinay Rajani: So, auto index for last five trading sessions, it has been consolidating. Primary trend is still up. The index is trading above its 50-DMA that is a good sign. But if I were to look at the momentum, somehow momentum is missing in the auto index.

It is likely to consolidate. Some stocks may perform, some stocks may not perform. So, it is not the sector which can
generate the alpha for the traders in the very short term.

I would suggest that one should stay away from the trading as far as auto sector is concerned. There are opportunities in the other sectors and that needs to be tracked. But as of now, we see auto index is likely to remain in the consolidation.

There is a strong support in the auto index which is 1% or 2% lower from this level. So, let it correct, let it consolidate. Once the momentum comes back into the sector, then we will review. But as of now, for the short-term traders, I would suggest that concentrate on the other sectors which are outperforming the market right now.

Which are those other sectors where you would recommend some sort of outperformance to come by? Is financial services one because ICICI Bank is flying away?
Vinay Rajani: Yes, so ICICI Bank, if I were to look at the chart, today it has registered a follow-up buying. Yesterday, there was a green candle and today it is also showing some traction. So, from the all-time high of 1362, right now the stock is trading 110 points down. So, good correction has already been witnessed and now stock is again resuming its uptrend. Stock has surpassed the level of 50 days EMA, so that is also a good sign. And financial sector, as a sector, we saw that in the last two-three weeks private sector banks and the NBFC space have shown some traction.

ICICI Bank has given good correction from the all-time high levels and now it seems that it has resumed the primary uptrend. So, yesterday’s low becomes the very strong support for the stocks, 1217 which happens to be yesterday’s low, that can be kept as a stop loss and we can expect some good recovery from this level also.

On the higher side I see a resistance around 1300 odd levels from where some supply can come for the trader. So, 1300 is the immediate resistance I see and overall bias is positive and traders should hold on the long position with the stop loss of 1217.