Market Watch: Which stocks could be in the overbought zone?

Which stocks could be in the overbought zone?


Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Nikhil Agarwal and here are the top headlines at this hour.Sensex welcomes 2021 with longest weekly streak in a decade
Oxford COVID-19 vaccine cleared by expert panel for India
December 2020 GST collections touch all-time high at Rs 1.15 lakh crore
Mahindra-Ford joint venture plans called off
Mahindra sales dip 10%, Maruti’s rise 20% in December
Antony Waste makes a solid debut on New Year Day

Let us take a quick glance at what happened on the Dalal Street today:

The domestic stock market logged its longest weekly winning run since 2010 as the Sensex ended in the green for the ninth week. Welcoming the new year with a bang, both Sensex and Nifty scaled fresh all-time highs on the first day of 2021.

Sensex rose 118 points to close at 47,869 points, while Nifty ended above the 14,000 mark for the first time.

TCS rose 2 per cent, while ITC climbed 2.3 per cent. Top lender State Bank of India advanced 1.7 per cent.

The rally was broad-based as gainers were more than double the numbers of losers. BSE mid and small cap indices rose 1.24 per cent and 0.90 per cent, respectively, outperforming the frontline index.

Will Nifty’s strong performance continue for the rest of 2021? Which sectors are overheated at this time?

To discuss this and more, we spoke to Rusmik Oza, head of fundamental research, Kotak Securities, to decipher what lies ahead for the market.

Welcome to the show, Mr. Oza.

1) It was a wonderful start to the New Year! What is your market outlook for January?

2) Which sectors or stocks do you fear could be in the overbought zone?

3) Antony Waste Handling Cell debuted at a premium, but it has been the least impressive debut in recent times. How do you see the IPO market shaping up in the near term?

Technically, while Nifty rose above the psychologically-important 14,000-mark for the first time but the trading range of 58 points was extremely narrow. A decent bullish candle on the weekly charts has a range of 238 points, which analysts say is a cause for concern.

We spoke to Nilesh Jain, Derivative & Technical Research Analyst at Anand Rathi Financial Services, to decode the charts.

Welcome to the show, Mr Jain

1) A new high in every session seems to be an established trend for Nifty. What do the charts foretell from here?

2) Which stocks do you think have the potential to deliver decent gains over the next few weeks, and which do you think, could be overheated?

3) What is the direction ahead for Bank Nifty?

Most markets across the globe were shut on the first day of the New Year.

That’s all for now. Do check out for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!

Credit: Stocks-Markets-Economic Times

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