2 stock ideas for the coming week by Soni Patnaik
Soni Patnaik of JM Financial Services says since Bank Nifty is about to lead the next leg of the rally, my top pick comes out to be ICICI Bank. “So ICICI Bank is on the cusp of giving that monthly breakout,” she told ET NOW in an interview. Edited excerpts:
Nifty scaled 21,000 this week but will this runup continue? And not just Nifty, let us talk about Nifty Bank as well given the fact that a lot of policy actions also kind of make this particular sector jittery.
The broader outlook for Nifty continues to be bullish. There is a bullish undertone.
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Offering CollegeCourseWebsiteIIM LucknowIIML Chief Executive Officer ProgrammeVisitIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowIIML Chief Operations Officer ProgrammeVisitThe indices are in the overbought zone and historical data suggests that whenever such overbought zones have been approached, there has been a correction. Maybe if we were to witness a corrective dip in this current scenario, it would be easier to define your risk-reward ratio. But this corrective dip can only get confirmed if Nifty breaks hat 20,800 spot. Until then, it is wise that you ride the upside momentum.
And it looks like that Bank Nifty is going to be the one which will lead the next leg of the rally. In the Bank Nifty there is no sign of exhaustion. With a very good base of 46,500, Bank Nifty is set to take out 47,500 plus levels in the coming week. It is quite clear that Bank Nifty can outperform Nifty for the moment. You can pick out stocks which have underperformed all this while. They are at the cusp of fresh breakouts, especially in the banking pack.
The broader outlook remains bullish. If we get any
