Profit booking possible after formidable runup in largecaps

BY SWAPNEEL MANTRI

TECHNICAL ANALYST, SUSHIL FINANCE

Where we are: The Diwali week saw the festive spirit rub-off on Dalal Street with indices hitting new highs on back of earnings optimism and fed rate cuts. Nifty closed the week at 11890.

What is in store: As we head into the November series, expect range-bound trade to continue with result based stock specific action. With formidable run-up in some of the large-cap stocks, some kind of profit booking in front line scrips cannot be ruled out. Looking at levels, 11920-11950 is the immediate target zone on the upside. Any move above 11950 may see Nifty heading towards 12000-12100 levels. On the downside, 11750-11600 support zone. Expect mid-caps to outperform front line stocks in coming sessions.

What you could do: Investors can look out for accumulating quality mid-caps at lower levels and build the portfolio from medium- to long-term point of view. Stock specific action on some of the frontline counters like Asian Paints, BPCL, Jubilant Food have had a good run-up and may see some profit booking in coming sessions. Stocks like Indusind Bank, State Bank of India, Apollo Tyres appear good accumulation candidates at current levels. Among the mid-cap counters pharma scrips Aurobindo Pharma, Alembic Pharma are showing intermediate bottoming out signs and can see upside in short- to medium term. Among the chemical counters, Tata Chemicals and SRF are good buying candidates.