By Kapil ShahWhere we are: Nifty has gained 2.8 per cent in August and 1 per cent last week.
Every strategic and sector index has closed in the green which indicates broad-based participation.
Strong performance has been observed in metal and pharma sectors.Nifty is moving in a rising channel and as of now it is placed at a lower arm which can be considered as immediate support.What is in store: Mid-caps and small-caps have started to outperform the heavy composite index.
So going forward, Nifty Next 50 and mid-cap stocks is likely to be in the limelight.
From a sector perspective, FMCG and IT sector remained very strong whereas Bank Nifty remains range-bound.
There can be an upsurge in PSU banks and auto stocks, which have remained underperformers during the recent past.What should Investors do: As far as Nifty is sustaining above 11,500 level, it can be considered as positive zone for the index with higher side upto 11,800 level.
From a stock perspective SBI, Glenmark, NTPC and Amara Raja batteries seems to have strength.
We have seen rotation shift in index so at current patch we need to look for sectors that has not picked up their momentum.The author is Technical Analyst, Emkay Global Financial Services.