Mumbai (Maharashtra) [India], October 29 (ANI): Indian equity markets are showing resilience amid global monetary policy developments, rupee movements and investor interest in the recent Jio IPO, with stock-specific action and buying in select large-cap stocks supporting the market, Hemang Gor, Senior Research Analyst – Derivatives and Technical Research at Axis Direct, said on Thursday.
In an exclusive conversation with ANI, Gor said the market was struggling to find a clear direction, with the Nifty trading within a range. He noted that the index needs to cross and sustain above 23,000 for a sustained upward move.
"Overall, there is very stock-specific actions which are clearly visible, and some amount of buying is also visible in some of the counters, leading counters, basically large-cap stocks," Gor said.
He identified 20,500 as an important support level for the index and said a sustained move above 23,000 would be crucial for further gains.
Commenting on monetary policy expectations after the US Federal Reserve kept interest rates unchanged, Gor said the Reserve Bank of India (RBI) was also likely to maintain a wait-and-watch approach, taking cues from other major central banks.
"So probably, RBI will also follow the suit, they will wait for how the other global central banks, how do they move and we will also be probably following the same thing," he said.
He added that global interest rate trends would remain an important factor influencing central bank decisions, with the Bank of Japan also likely to maintain a pause.
On the impact of the recent Jio IPO, Gor said that while the public issue was historic for the Indian market, its influence on the broader market could remain limited, particularly because of liquidity conditions.
"Jio, it's a... has been a very big IPO, a historical IPO, rather, I'll put it from the Indian perspective. But just because of one stock, I don't think that will really have a basic, a more impact on the market because of particularly of the liquidity thing," Gor said.
He reiterated that the Nifty's ability to sustain above 23,000 would be important for further upside, with the next levels at 23,500 and 23,800.
Looking ahead to the coming week, Gor expressed a positive view on select automobile stocks, including TVS Motor, Hero Honda and Bajaj Auto.
"If you want to go on the long side, auto particularly that is like stocks like TVS Motor, Hero Honda, Bajaj Auto, they are likely to trade for the coming week with a bit of more positive bias," he said.
On the other hand, he cautioned that leading IT stocks such as TCS, Infosys and Wipro could witness some short-term profit booking.
However, Gor clarified that his cautious view on IT stocks was limited to the near term and did not indicate a reversal in the sector's broader trend, which remains positive. (ANI)
Auto stocks may outperform next week; IT counters could see profit booking: Hemang Gor, Axis Direct
