Nifty headed towards 18,750: Jay Thakkar

Domestic benchmark equity indices are on a record-breaking spree led by robust Q2FY22 earnings by India Inc ignoring inflation and the prospect of tightening monetary policy. With technical charts suggesting an overbought situation for the markets, Money9 spoke with Jay Thakkar, Vice-President and Head of Equity Research at Marwadi Shares and Finance to understand where the markets are headed.

Edited excerpts

Nifty hit the psychologically important level of 18,500 this week? How do you see the trend going ahead?

Thakkar: We had a target of 18100-18150 and as per our anticipation, it has taken off the consolidating range on the upside. Now, on the lower side 18100-18250 is a crucial support and till these levels are held the short-term target will be 18650-18750 levels.

Have you spotted any sectors or themes which have to be part of the portfolio now, and why?

Thakkar: Nifty Metals, Nifty Auto, Nifty Bank are sectors that are likely to perform from hereon. Backed on the structural change from current to EVs the auto sector will continue to be in limelight for many quarters going ahead. The Private sector banks have started to participate on the long side.

What are the mistakes do you think traders should avoid at all-time high levels?

Thakkar: Traders should avoid herding at any level as it may lead to irrational trading or investing. A well-researched stock picking should be done either for trading or investment. One should therefore always consult one’s financial consultant before taking any action

Can you list few stocks which can give a good return to investors in the next 12 months?

Thakkar: We recommend stocks ITC, Maruti, Pidilite, PI Inds, HDFC Life for good returns to investors in the next 12 months.

How do you see Bank Nifty from here on?

Thakkar: Bank Nifty has taken off its crucial hurdle of 39000 levels so the revised target on the upside comes to 40500 and thereafter 41000 whereas 39000 is immediate support and below that 38800. The private sector banks have just begun the fresh leg up hence that will push the Bank Nifty up from hereon