These 2 Nifty plays, 1 midcap could return up to 23%

Considering the derivatives expiry next week, Vikas Jain of Reliance Securities expects the market to remain volatile with respect to rollover movements in individual sectors and stocks

The Nifty traded in a narrow 150 points range last week, while individual stocks reacted sharply in tandem with their quarterly performance and management guidance. Bajaj Finance, Bajaj Finserve and RBL Bank scaled new 52-week highs after their results last week, while Ashok Leyland, Bajaj Auto and Kotak Mahindra Bank declined 20 percent, 10 percent and 5 percent, respectively.

The rupee continued to trade weak, closing near 69 levels to the dollar and weighing on bond yields and fiscal deficit.

The Nifty ended last week 0.1 percent lower, while midcap and smallcaps declined 1.1 percent and 2.4 percent, respectively.

Performance of sectors were mixed with energy and IT up 1.8 percent and 1.1 percent, while metals, pharma and realty declined 5.9 percent, 2.9 percent and 3.7 percent for the week, respectively. India VIX gained 10 percent for the week.

On the weekly chart, the Nifty has formed a Doji pattern. We continue to remain positive on the market with key support placed at 10,850, which would act as trend reversal. However, its 76.4 percent and 100 percent Fibonacci extension levels of the prior upmove (9,952-10,929) will work as a major hurdle. The latter are placed at 11,150 and 11,400 levels, respectively.

Considering derivatives expiry this week, we expect the market to be volatile with respect to rollover movements in individual sectors and stocks.

Capital Ways Investment Adviser

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