100 points of gain yet again that we are seeing on the market. Market is trading at an all-time high. How do you see Nifty performing now from here on going forward?
Aditya Arora: Look, market is in strong hands and continuously scaling high on back of heavyweights. In the last week, we saw good strength coming in from largecaps like Reliance, which contributed majorly to the rally.
And this week, the IT space is doing the heavy lifting. We see TCS doing well. Infosys doing well. And even midcaps doing well. So that is the space to look out for in this week as well. So, I think the uptrend may continue.
Consolidation to upward bias may continue in the market because global markets are also doing well. FIIs have strong buy position in the market and they are not unwinding the position as of yesterday. So, data-wise technically also market looks neutral to bullish on Nifty and Bank Nifty both.
As you were mentioning that Nifty IT is the space to be in, the index is the top sectoral gainer. Next week, we are going to see IT companies coming out with earnings. So, how is the setup looking like for the Nifty IT Index currently?
Aditya Arora: Setup looks really interesting because if you compare even Indian IT companies historically, they are trading at muted valuation levels. They are hammered down significantly in the last few quarters. So, valuation is decent, not expensive at all compared to other spaces, like smallcap, midcaps which are pretty overvalued in general.
But IT spaces not overvalued. Second, compare Indian IT space to international markets, Nasdaq.
Nasdaq is trading at 52-week high, whereas Indian Nifty IT Index is not at all very close to the swing high levels, that is number two.
And number three, there is a big divergence between what is happening in Nasdaq and what is happening in Nifty IT Index. So, this could trigger a technical rally in IT Index, that is one more positive point for IT space.
And third, is that we see that there could be rate cuts in the international market, which could trigger a rally in emerging markets. So, I think IT space could again participate and help propel the index higher. So, these are a few of the points which make IT space pretty interesting as of now.
Mahanagar Gas, now the stock has been gaining for last couple of sessions. It seems to have come in that one year breakout zone. How is the chart looking like for Mahanagar Gas?
Aditya Arora: Mahanagar Gas did give good rally in last two days. But if we look on the very short-term timeframe, then 1700 is the resistance mark for the stock. 1680 to 1700 is the supply zone. Until that is not taken out, excess supply is not absorbed, stock would face hurdle and hiccups in giving a one-way rally.
So, once 1700 is taken out consistently, decisively, then make a bullish view on the stock, otherwise avoid as of now because the short-term rally has played out.
Can you highlight your top picks for today?
Aditya Arora: So, my top picks are from the IT space only. I think IT is doing well. I talked much about the sector, so the stocks are also from the same sector. First buy is TCS, which is a heavyweight, which is doing the heavy lifting today as well, so that is a buy at 3975 and 3875 stop loss and 4075 to 4150 is the target.
And second one is Mphasis, it a midcap stock from IT space, that is a buy at current market price of 2530. 2400 is the stop loss and 2700 is the target.