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    Positive on ITC, UltraTech, TCS, Hero Moto, Apollo Tyres, Federal Bank & Mindtree

    Synopsis

    One will have to be very selective in terms of individual stocks selection from current levels.

    Investment-ideas--Getty-1Getty Images
    The Nifty 50 will complete a 13-month up-cycle post the NBFC crisis with intermediate swings and higher bottoms of 10,030 that was witnessed in November 2018.
    By Vikas Jain
    Senior research analyst, Reliance Securities

    Where Are We: The Nifty 50 index has scaled to a new all-time high led by Bank Nifty which surpassed its June 2019 highs, but none of the other indices have crossed its 52-week high. We have seen a secular move across sectors and stocks over the past three months along with a positive global market momentum.

    What Is In Store: The Nifty 50 will complete a 13-month up-cycle post the NBFC crisis with intermediate swings and higher bottoms of 10,030 that was witnessed in November 2018. We expect the markets to be volatile over the next few weeks as the closing is at all-time high with a sharp outperformance from lower levels. There are a lot of events being lined up with domestic credit policy in the first week followed by the FOMC and ECB in the second week which would be important to watch from current levels.

    What Should Investors Do:
    One will have to be very selective in terms of individual stocks selection from current levels. The upside seems to be capped on the higher side near to 12,280-12,350 levels as a lot of options build-up in CE can be witnessed in strikes of 12,300. Any breakdown below 11,880 would set off a sharp correction in high beta sectors and stocks. Among individual stocks we are positive on ITC, UltraTech, TCS and Hero Motocorp in the largecaps while in midcaps Apollo Tyres, Federal Bank and Mindtree are our top picks maintaining a better risk reward ratio.



    (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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