What to do with Zomato, Tata Investment and 4 other stocks? Aamar Deo Singh of Angel One decodes

Investors are advised to adopt a cautious approach due to uncertainties in the financial markets. Nifty and Bank Nifty experienced a correction, along with global markets, as concerns over the Israel-Hamas crisis and US Fed Chairman Powell's speech weighed on the markets. Next week, investors will watch out for the US Fed Chairman's speech, ECB rate decision, US GDP estimates, and the quarterly earnings of major companies. Midcap and small-cap stocks have performed well, but investors should be selective and consider booking profits. Volatility may increase in the future.

Aamar Deo Singh of Angel One says investors need to be cautious with fresh investments due to unappealing risk-reward ratio in many stocks. Nifty and Bank Nifty are consolidating, while India VIX levels remain stable. With the results season over, all eyes are on the US FOMC meeting minutes, slated to be released later this week. Top gainers include MRPL, Natco Pharma, and Aegis Logistics.

The coming week should be interesting, as significant economic data releases and critical new flows are expected to provide direction to the market. Among the domestic data sets, India's quarterly GDP figures, monthly auto numbers, and exit polls from the recently concluded state elections are likely to weigh on markets. On the international front, US GDP data and OPEC's output policy decision are two triggers that investors will be watching closely.

Investors will eye Q1FY24 earnings, foreign capital inflow, and global cues in July's final week for stock markets. IPOs and new listings await D-Street along with the scheduled monthly expiry of July derivative contracts.

Even if there is no major decline, it is capable of injecting markets with some spikes in the near term. It is strongly recommended that one needs to keep leveraged exposure at very modest levels and stay invested in the low beta stocks and with the ones that have improving relative strength. A cautious approach is advised for the coming truncated week.

Positive news flow on Jio as well as Reliance consumer products apparently boosted the sentiments for the stocks, which had been dominated by bears post the first half of May.

Aamar Deo Singh says: Investors should adopt a cautious approach and build a multicap portfolio with stocks across large, midcap, and smallcap in equal proportions. Key sectors to consider are infrastructure, autos, banking, pharma, IT, and renewables. At current levels in the market, it would be prudent to adopt a cautious approach as valuations in some pockets have risen sharply over the past few months.

Smallcap250 Index has formed a Doji candle in the monthly timeframe and a MACD break in the weekly time frame indicating more weakness, with 74% of stocks in the Smallcap250 index seeing a negative weekly closing last week. The number of stocks that remained above 100DMA fell to 59% from 79% and those that remained above 50DMA fell from 82% last week to 40% this week.

Investors will also keep a close track on the IIP data scheduled to be released on March 10 and the performance of global markets especially in the US.

Rupak De, Senior Technical Analyst at LKP Securities, recommends PNB, Chambal Fertilisers, and Havells as top stock picks for the week ahead. Nifty levels to watch out for are 22,500 and 22,400 with support expected to hold at 22,400. Bank Nifty is expected to outperform the Nifty with potential upward moves towards 49000.