What is your take, which side of the fence is market headed to at this point in time given the fact that we thought that it is going to be a very dull and easy day today, it is not transpiring like that?
Dharmesh Shah: Yes, definitely it is a very dull day for the market. It is a no trading zone for the market, I can say. Either side stop losses are getting traded. The market structurally looks positive, yes. As I said, the bull market corrections are part and parcel. We expect 23,700 to 23,500 remains to be the very strong support for the Nifty.
Maybe, there is a lot of news. Today, expectation of China’s stimulus package to be getting announced so that might trigger a volatility in the market. But we believe we do not see much of a downside for the market. 2-3% downside cannot be ruled out.
Again, 23,500 to 23,700 remains to be the very strong support for the Nifty. On the higher side, again, we believe 24,500 will be acting as a stiff resistance for the Nifty in the near term. But gradually, we believe things should get better going forward in the coming few weeks.Any top recommendations for our viewers?
Dharmesh Shah: We remain to be positive for capital goods as a sector where L&T remains to be our top pick at the current market price. If you look at this chart of L&T, after the strong sets of numbers it looks like L&T is likely to see a target of around 4040 maybe not in the near term but from the quarterly perspective, L&T looks positive for target of 4040, keeping a stop loss of 3360.
So, L&T, again, remains to be on the positive side. Again, if you look at the chart from the medium-term perspective, joining the lows of covid 2020 and 2022, it looks like it is exactly finding the support at around 3350 and also the 200-day moving average is also placed around those levels. So, L&T remains to be our top pick at the current market price.