 "NSE, Nifty, markets")
Nifty sees resistance at 18,000
The benchmark Nifty last week pierced 18,000 for the first time since January 19. The index managed to stay above that mark just for a day. Technical analysts say the Nifty faces stiff resistance around the 18,000-level and aggressive Call writing was seen at 17,900 and 18,000 strikes. On the downside, there is support around 17,600-levels. Experts say any breakout of these two levels could decide the market direction. However, chart patterns point towards short-term weakness, they add.
Vehicle financiers on investor radar
Vehicle financier stocks are likely to gain on the back of demand recovery and improved asset quality. Analysts said vehicle financiers’ commentaries have been positive about broad-based economic recovery, continued improvement in demand, robust collection efficiency and increasing disbursements. However, the signs of cyclical recovery face the challenge of rising input costs, especially fuel. Analysts said buying stocks that are trading at a sizeable discount to long-term averages, and companies with more diversified product offerings are two possible trades. Cholamandalam Investment and Finance and Mahindra & Mahindra Financial Services are two stocks in this space analysts are bullish on.
Tracking changes of ace investors
With companies having started disclosing their March 2022 quarter shareholding data, savvy investors are keenly tracking the stocks that are on the radar of ace investors such as Rakesh Jhunjhunwala, Dolly Khanna, and Ashish Kacholia. The playbook followed by these investors is quickly building long positions in companies where well-known investors have increased their shareholding. For instance, shares of Sharda Cropchem and Prakash Pipes surged last week after it emerged that Khanna had increased stake. The downside, warns one analyst, is that this strategy leads to excessive speculative bids.
