What to do with Policybazaar, Vedanta, IEX and 3 other stocks? Religare Broking’s Ravi Singh decodes

Q: Nifty defied September seasonality riding on Fed’s rate cut decision and ended the month with over 3% gains despite a sharp fall on Monday. While Powell’s commentary on Monday was hawkish he indicated two more cuts totaling 50 bps. Is this factor now priced-in or the momentum could continue?

The positive momentum of Nifty may continue but we may see some profit taking in days to come. This retracement could be in terms of either price or time. It is essential for a healthy higher run. Although the Fed’s interest rate decision is supportive, a possible consolidation may develop while the market digests recent gains.

Q: What are the important levels for Nifty and Bank Nifty for this week?

The important level for Nifty is 25,800–25,900, as a break below this can intensify pressure. For Bank Nifty, 53,000–53,200 are crucial levels and a break below these could also lead to increased selling pressure.

Q: October seasonality favours markets and the earnings season starts in less than two weeks. Which sectors/stocks should one focus on?

For October, metals, infrastructure and financials look attractive. These sectors could witness advantages through seasonal trends and the forthcoming earnings season. So, one must conduct individual research and scrutinize particular stocks’ fundamentals from among those sectors before investing.

Q: September was a great month for most sectors barring Nifty PSU Bank and Oil & Gas. Should one avoid them or are their pockets where one could look to capitalise?

As of now, one should stay away from the Nifty PSU Bank and Oil & Gas sectors. They have already underperformed in September and would require time to recover. Take time and wait patiently for clear-cut signs of improvement before investing. Focus on the sectors revolved around strength and positive momentum.

Q: Accenture’s earnings and FY25 guidance is positive for the IT sector while the biggest tailwind is the likelihood of more rate cuts by the US Fed. How are you viewing this sector in the medium to long term?

The outlook for IT is positive for medium to long-term with good numbers from Accenture and possible Federal Reserve rate cuts. Ongoing demand remains for cloud, AI, and digital transformation services, but economic uncertainty and wage pressures provide headwinds. Tech investment will continue, thus keeping overall the sector attractive.

Q: FPIs net buying at Rs 57,724 crore is now highest in 9 months which is a very encouraging sign for Indian markets. Do you see the trends continuing and which pockets/sectors could be the biggest beneficiaries of this?

FPI’s further strong buying is expected to continue, which is positive for the Indian markets. The most favoured sectors include banking, financials, IT, and infrastructure. This trend is also indicating an increase in confidence with respect to India’s economic prospects.

Q: Ceat, Vedanta and NALCO grabbed eyeballs with big rallies last week while Easy Trip Planners, Policybazaar and IEX were among the worst losers? What should investors do with them?

Investors should manage these stocks as follows:

Ceat: Continue holding, set stop loss at 3,000

Vedanta: Continue holding, set stop loss at 490

NALCO: Hold, set stop loss at 205

Easy Trip Planners: Exit the position

Policybazaar: Can hold, set stop loss at 1,550

IEX: Hold existing positions, set stop loss at 191

Also Read: Nifty’s October returns positive on 8 out of 10 years; DIIs shine while seasonality adverse for FIIs

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)