Speaking to ET Now, Vinay Rajani noted, “Yes, choppiness is still there, 350 points of correction after the positive announcement of GST. So, the market is not cheering, as we have been discussing—every higher level is being sold on, and FIIs are carrying their short positions in index futures; they have almost more than 92% of their index futures positions on the short side. So, definitely there is a concern; sentiments are not that positive.”
He pointed out that despite weakness in the Nifty over the past two sessions, not all sectors are under pressure. “Some stocks and sectors are still performing and registering new 52-week highs, like auto and auto ancillaries. So, there is no across-the-board selling in the market,” Rajani added.
According to him, the broader market trend remains range-bound, with the Nifty stuck between 24,500 and 25,000. “We are waiting for the Nifty to break out on either side, and then we will get momentum. But the bias is definitely on the positive side. The ‘buy on rumour, sell on news’ phenomenon has already been seen since yesterday, but at lower levels again, we could see buying emerge from the support level,” he said, highlighting 24,500–24,550 as a strong base.
On the technical side, Rajani said momentum would only return once the index closes above the 50-day EMA near 24,800. For now, stock-specific trades are likely to outperform.
When asked about his current trading ideas, Rajani turned bullish on auto ancillary stocks. “Basically, in this kind of market, after the positive announcement for the sector, auto and auto ancillaries have been doing quite well. Out of this space, I like Sansera Engineering, which has given a fresh breakout on the chart. We have already seen outperformance from many auto ancillary stocks in the last three to four trading sessions, but Sansera Engineering, a good-quality stock in this space, is now technically strong on the chart. So, 1,360–1,364 should be the entry level for traders, 1,300 the stop loss, and on the upside, we are expecting a target of 1,471,” he explained.He also recommended Endurance Technologies as another promising bet. “Endurance is looking quite strong. There has been a cup-and-handle breakout on the weekly charts, and the recent price move has been resilient in falling markets. So, one can go long on Endurance Tech around 2,990, with a stop loss at 2,930. On the upside, I am expecting a target of 3,100. The time frame for both recommendations would remain two to four trade sessions.”While overall market sentiment remains cautious, traders appear to be shifting focus towards selective opportunities, particularly within auto ancillaries, which continue to buck the broader trend.
as a Reliable and Trusted News Source