Deepak Jasani, Head of Retail Research, HDFC Securities, said the former Metals leading sector was on a hiatus amid profit-taking and the slump in geopolitical animosity, as banks and the consumer sector caught up with relative valuations.

In an interview with Kshitij Anand of Zeebiz, Jasani emphasizes that the Nifty50 can be traded between 17639 and 16988, while Bank Nifty can be traded between 37318 and 35804. Edited excerpts:

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Q) Bulls took charge of Indian markets this week. Benchmark indices rose more than 4% in the week with a short break. What sparked the price action?

A) The apparent diminution in the intensity of current concerns (war, crude oil prices, etc.) has led to a decrease in selling pressures around the world and the use of cash in stocks by investors who have been on the sidelines wait.

Foreign Portfolio Investors (FPIs) turned buyers into buyers towards the end of the week and small and mid-cap stocks began to participate in the upward move on the back of better sentiment among retail investors.

Q) The Nifty50 is back above 17000. What level do you expect for the index and NiftyBank in the coming week?

A) Nifty can trade between 17639 and 16988 while Bank Nifty can trade between 37318 and 35804.

V) Sectorally, consumer and banking stocks predominated. What sparked the price action, but last week’s ‘metals’ star took a beating? What sparked the price action?

A) The formerly leading Metals sector took a lull due to profit taking and easing geopolitical hostilities, while banks and the consumer sector caught up with relative valuations.

Q) The US Fed took the first step in raising interest rates that market participants were taking into account. But do you think further rate hikes could impact equity markets or anticipate the worst?

A) While the 25 bps rate hike was in line with most expectations, any indication of a faster rise in the next meeting and the expectation of a faster-than-expected cut in the Fed balance sheet could dampen sentiment.

Q) Bulls have taken control of D-Street – do you think this is the right level to invest or long-term investors can wait a while?

A) People who have underinvested in stocks can gradually start investing in Nifty stocks or other stocks where they have done enough research.

People who are fully or nearly fully invested can wait for a significant correction before betting further money. In fact, they can try to raise some money in the ensuing rally.

(Disclaimer: The opinions/suggestions/advice expressed here in this article are those of investment experts only. Zee Business encourages its readers to consult their investment advisors before making any financial decision.)

This post Metals took breather last week from profit-taking and fall into geopolitical hostilities: HDFC Securities’ Deepak Jasani

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