Key Points
Rahul Sharma, Director & Head - Technical & Derivatives Research, JM Financial Services, says there are two sectors which clearly are looking very good and are on our buying list..
Now, we strongly feel that there is a strong chance of a sucker's rally coming into play over here, which means that we may be very well towards the end of this mega up move that we have seen in the last couple of months..
We feel there is more upside to it given the last two years of underperformance that this sector has exhibited, so a lot of catch up being played over here...
So, these are the two sectors where we are looking to cherry pick and buy stocks on the long side.. There is a bit of pharma also coming into play where we are seeing selective buying happening in the pharma space as well..
So, for a trading bet one can look to buy for a target of 2650, have a stop loss placed at 2424 and we feel like chemicals, especially given the multi-month underperformance now seems to have reversed and this is where alpha generation can happen over the next few weeks and months..
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Sector rotation is the ideal strategy going into the rest of 2023: Rahul Sharma
25, Aug, 23We are very bullish on IT stocks and Coforge is one of those names which we all have in our IT basket as well. My sense is this stock can revisit its December 21 highs, somewhere around the 5800-5900 mark. From a positional perspective, from a delivery perspective looks good. From a trading perspective, I think there is a good chance we head towards the 5400 mark. So Coforge would be my pick amongst the names. IT as a basket is something that we are liking in particular.