Next leg of the rally from cement pack: Aditya Arora

Aditya Arora, of Adlytick, says he does not expect much movement in the market. So, it can break on either side. For example, on the upside, the levels for Nifty would be 24,400. If that is broken, the market may inch up a little higher and on the downside, the levels are 23,800. If that is broken and sustained, we can expect a little downside. But the important thing is that both smallcaps and midcaps are doing well,

It has been pretty volatile, pretty sombre coming in for the benchmark indices. Are you expecting such trade to persist for the markets going ahead, where you may see absolutely no action, given the fact that the month of November has been full of action?
Aditya Arora: Absolutely. The market is pretty range-bound and it is consolidating within that big candle, which we saw two days back when markets slid almost 350 points. So, it is consolidating within that band and until that band is not broken, I do not expect much movement in the market. So, either side it breaks, for example, on the upside, the levels for Nifty would be 24,400. If that is broken, I expect the market to inch up a little higher and on the downside, the levels are 23,800. If that is broken and sustained, we can expect a little downside. But the important thing is that smallcaps and midcaps are doing well, as pointed out by you. I continue to see traction over there. Stock specific breakouts are visible and I like the cement space.

Cement space has been buzzing in trade. Any specific picks in that sector?
Aditya Arora: I like UltraTech Cement, which is one of the leaders in the cement pack. It is up 3.55% today. That is a buy at Rs 11,600, stop loss is Rs 11,100, and target is Rs 12,100.

Which are the other sectors that are looking attractive at this point, given that we have seen reasonable corrections creep into the market? Is there any sector to watch out for the next leg of the rally?
Aditya Arora: Nifty Pharma is an evergreen sector, which is also doing well today and second one would be Nifty FMCG which saw a strong up move in the last week, strong rebound. I expect their recovery to be encouraging and if you are talking about industrial sensitive, cyclical sectors, cement and infra look good. The next leg of the rally could be from the cement pack.

We are seeing some kind of a pressure when it comes to banks and NBFCs, specifically those with MFI exposure. How are you looking into the bank and the NBFC sector?
Aditya Arora: It is on both sides because a lot of stocks like Bandhan Bank are inching lower as are a lot of NBFCs. HDFC Bank on the other hand, is flirting with a 52-week high. There is no clear indication which side there could be a breakout or breakdown. If I specifically talk about Bandhan Bank, then I positionally feel this stock could break its swing lows and we can see little lower levels and the same is true for NBFCs also. In the medium term, I feel they can inch lower but in the short term, I would like to wait to see whether there is a breakout or breakdown.

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