The stock market has just become a first for investors. They do not know the direction of the market. They are afraid to bet on stocks. To understand this market, Moneycontrol spoke to Ashish Kayal of Waves Strategy Advisors. Asked him about the future direction of the market. Also asked which stocks can yield good earnings by betting on them now. Kayal said that the movement of Nifty is as per estimates. He has more than two decades of experience in capital markets.
He said that when we had given a target of 23,300, it was trading around 23,980. We can see signs of decline in this. The overall trend is of bullish selling. This will be the best strategy in terms of risk-reward. This is because short-term indicators are oversold. The rise will be seen only if Nifty closes above the previous session’s high (23,600). But, in the meantime we will have to use the bullback to sell.
He advised betting on Kiri Industries and Carborundum Universal. He said that betting on these two stocks in the next week can yield good profits. Kiri Industries is expected to breakout of the rounding bottom pattern on the weekly chart. Carborundum Universal is trading near the resistance level. Volume has started increasing, which is a good sign. In such a situation, you can earn good money by placing bets next week.
Regarding Bank Nifty, he said that 200-day EMA is an important support level. If Bank Nifty goes below 49,900 then the breakdown in the index will be confirmed. In case of a decline it can go up to 48,500. He also believes that on the downside, Wave 3 or Wave C may start in Bank Nifty, which may create panic in the market. Bank Nifty occupies a very important position.
