Nifty Bank has historically given 5% average return in Q4 earnings season: Anand James
Nifty Bank, which hit a fresh lifetime high above 49,000 last week, has given an average return of 5% during the March quarter earnings season 7 out of 10 times in the last 10 years, says Anand James, Chief Market Strategist, Geojit Financial Services.
Edited excerpts from a chat with James on the market outlook in the near term
and which stocks to buy:
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Both Nifty and Nifty Bank hit fresh peaks in the week and now the earnings season will be the biggest driver in the near term. How cautious are the charts looking like for the week ahead, which will also be a holiday-shortened one?
HDFC Bank, ICICI Bank, SBI, and Axis Bank which constitute the bulk of the banking sector in Nifty 50 look exhausted hinting at profit booking in the near term. Incidentally, 70% of the time in the last 10 years, Bank Nifty has given an average 5% return during the Q4 earnings season. This gives us the hope that profit-booking efforts could be short-lived.
Chart-wise, Nifty has just turned lower from the upper extremity of a rising parallel trendline channel which has been holding prices since the start of 2023. We have had prices testing the lower extremities of this channel twice in 2023, but this year so far, the lowest it has come is till the midline of the channel. This suggests
