New Delhi: With the earnings season knocking at our door, experts believe that markets will trade cautious in the latter part of the week and midcaps will outshine the large caps.
Large cap stocks seem to be fully priced at 11,300. With them running up stupendously, the focus could now shift to buying mid cap stocks.
Markets will now look forward to numbers from Infosys around April 10 and trend accordingly. Besides that markets would look upon overseas cues in the global markets and high crude oil prices influencing them, say experts.
SP Tulsian, Investment Advisor: Market to trade cautious from April 7, 2006
Markets will be fine between Monday and Wednesday. Once the result expectations start pouring, may be from 7 or 10 April onwards markets will be a little cautious. A correction of 200-300 points will not be a problem. Liquidity flows are overwhelming enough to cover the high crude oil concerns.
One should be selective. Take a call on sectors like non-ferrous, property, sugar because all these industries are likely to perform very well irrespective of where the markets are headed. Sugar is one sector, which will get insulated against the rising crude oil prices. Those have to be considered while making an investment decision. By and large major sectors are likely to perform very well barring oil marketing companies and may be steel stocks.
Sumeet Rohra, Antique Stock Broking: Some kind of correction can be expected on the index next week
I like mid cap stocks and expect outperformance by this segment going ahead compared to the large caps. As the latter have had a stupendous run in recent times the focus could now shift to buying in the mid cap stocks.
Large cap stocks seem to be fully priced at 11,300. If one wants to trade the markets on the long side it should be selectively large caps but focus on the mid caps.
Markets will now look forward to numbers from Infosys around April 10 and trend accordingly. Besides that markets would look upon overseas cues in the global markets and high crude oil prices influencing them. Obviously, FII inflows coupled with local mutual funds will largely determine the trends on Indian bourses.
However, the market sentiment is so strong that nobody is looking at high crude oil prices and its impact on global economics. Liquidity is absolutely overwhelming any negative news flows.
11017 is a very strong support for the index on the downside. It’s very difficult to give a resistance as the markets are in uncharted territories and a number of factors - both positive and negative - will determine the direction. However, 11357 is a small hurdle now. So long as 11017 is not breached there is no reason for concern.
Hitesh Sheth, Technical Analyst, Prabhudas Lilladher: Heavyweight stocks under pressure
At higher levels heavyweight stocks are under pressure. Markets will be sideways. Midcap segment will do well. Nifty will trade around 3300 on the lower side and 1100 on the Sensex. On the upper side one can see 3500 on the Nifty and 11,450 on the Sensex.
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