Here's why Aditya Agarwala is bullish on HDFC Bank
«The risk to reward is clearly in favour of going long on the Bank Nifty at current levels given the fact that some of the midcap ITs have already rallied and we are seeing the kind of sharp rally in the real estate already in trade today,» says Aditya Agarwala, Invest4edu.
DIIs are sitting on elevated cash levels who knows but it was just a one-day scare. Such a tragic and unfortunate event and on such a large scale unfolding in Middle East and what do we get, barely 1.5-2% cut on the smallcap index.
To be honest we did get a bit of geopolitical tension and markets tend to correct significantly on back of geopolitical tensions, but to be honest markets had started correcting and showing signs of weakness much before this news came out and many a times what happens is whenever you have an event it tends to form a bottom for the market and from there it usually tends to inch higher.
So, I could feel that this was one of the cases where markets were waiting for some kind of a negative news and we got a negative news in trade yesterday wherein markets corrected a bit. What was interesting to notice is Nifty did not break the highs of the hammer candle that we had gotten last week which was very interesting.
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From there markets did show a decent pullback in trade yesterday itself and today from the word go markets have been buzzing around. So, my sense is there is more upside left in this rally that we are witnessing in trade today.
We will be surprised if markets actually test levels of 19,700 to about 19,800 as well on the
