Market Outlook

Given the current market volatility, auto stocks seem to be a better bet for long side trades. Select stocks like M&M and TVS Motor can rally up to another 12 per cent.

Over past decade, strong retail flows have coincided with declining / low deposit rates, said analysts at Jefferies, who expect the deposit rates to go above the 7 per cent level with a lag

Select sugar stocks like Balrampur Chini, Dwarikesh Sugar and Renuka had jumped up to 6-fold post the Covid-19 decline; However, off late the stocks have corrected sharply post export limitations.

The weekly F&O data also highlights significant build-up in open interest at the 17,700 Put, suggesting likely support at this level.

The technical analyst from HDFC Securities recommends buying Transport Corporation of India basis charts

According to the current chart structures, shares of OMCs needs to hold their relevant support levels to stay afloat.

Charts of steel stocks signal further downside, indicating a fall up to 20 per cent in select shares; cement counters indicate a wait-and-watch approach

That said, the derivative market average turnover has improved in May

We can see a possible earnings growth revival in the automobile sector if the raw material pressure softens and semiconductor availability improves

The Nifty Auto index is slowly inching towards 200-DMA; above which the index can gain up to 4 per cent.

Watch out for these key levels on SBI and Bank of Baroda, while Tech Mahindra and DMart can be avoided for now.

Adani Enterprises can rally up to 14 per cent; whereas ACC, and Ambuja Cements can gain another 10 per cent each, indicate charts

As liquidity starts drying up, banks rates start rising and market returns struggle, we expect some level of softness in household market allocations, he said

Chris Wood believes the best way to play Indian markets is the upswing in the Indian property/real estate sector despite the rate hikes by the Reserve Bank of India (RBI)

Among the losing pack, Solara Active Pharma Sciences has slumped 75 per cent, while Aarti Drugs, MCX India and Tata Communications are other major laggards

The stock has declined more than 50 per cent from its 52-week high touched in December 2021; Charts indicate the best way to approach the stock is to stay on the sidelines for now.

The outlook for Natural gas stocks looks good. However, these stocks need to cross and sustain above the key levels for renewed buying interest.

The technical analyst from HDFC Securities sees the next major support for the Nifty at 15,700-level.

The metal index on the NSE has tumbled 14 per cent so far from its historic peak and continues to drift lower

Market participants should avoid bottom fishing at the these counters and wait for a fresh trend to emerge.