Update on NIFTY. View on NIFTY for the month of March 2018.
Earlier we had anticipated a breakout of the range 10250-10600 on the upside, which did not happen. NIFTY had come down the lows of the range and has broken the range on the downside and has made a low of 10141 and a closing low of 10150.
When the range is broken on either side, fresh range, support and resistance is formed.
Current range for the NIFTY is 10000-10880. Pullback towards 10380 and 10620 are more likely and closing between 10000-10300 is likely for the month of March 2018.
On a longer term view, NIFTY can close 2019 between 11200 and 11700. We expect 11700 to be hit once before end on 2019, anticipating good global and domestic outlook.
On sector wise, We are bullish on IT technically, it can find good support on the downside where it is hard to find sellers. We are looking for a pull back in Banks, Banks will enter into hard times where people will keep selling on every pull back. FMCG has just entered into consolidation mode. Autos are correcting for quite some time now. Metals are volatile with global policies and commodity prices. Pharma has not shown any sign of recovery fundamentally, keep away from Pharma.
Macros are dull while the micros are too good.
Keep your portfolio concentrated on IT, Auto ancillaries, NBFCs, Chemicals, Fundamentally performing Midcap Pharma, Banks ( Bullish on only HDFC Bank, Indusind Bank, Kotak Mahindra Bank) other banks can bounce as said earlier.