D-Street: Exit Poll impact on D-Street! Religare Broking expert tells what to do with Naukri, DMart and 4 other stocks?

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Exit polls are out now so what do you make of them and what are your hopes from markets till the counting concludes?
All the exit polls indicate that the BJP will retain power, which is expected to lead to a positive reaction in the markets. However, given the election-related uncertainty, we may see a volatile session on Monday as the market reacts to the exit poll numbers and anticipates the final outcomes. Investors should be prepared for fluctuations but can remain optimistic about a potential rally if the final results align with the exit polls.It was a tough week for Indian markets with election related jitters coupled with Fed’s Kashkari’s hawkish tone where he said that possibility of further rate hikes cannot be ruled out. How do you see this development for Indian and global markets?
Yes, it seems there will be some time before we see rate cuts by the Fed, as Kashkari believes the Fed will eventually reach its 2% inflation target but stresses the importance of patience. I feel that Indian markets will not be significantly impacted by this, as they will be more focused on the election outcomes and the upcoming budget. The global markets might remain cautious due to the potential for further rate hikes, but the local sentiment in India will likely be driven by domestic factors.Do you expect volatility to go up this week and if yes how should one trade?
Yes, volatility is expected to remain high for the first half of the week. On Monday, the market will react to the exit poll results, and on Tuesday, it will respond to the final election outcomes. It is advisable for investors to stick to quality large-cap stocks and consider adding on dips to navigate this period of increased volatility. This strategy helps manage risk while taking advantage of potential buying opportunities in fundamentally strong companies.

What will be the key levels for Nifty and Bank Nifty for this week?
The key levels to watch for Nifty and Bank Nifty this week are 23,000 and 50,000, respectively. A break above these levels could trigger a significant rally in both indices, leading to potentially substantial gains. Investors should monitor these levels closely, as they represent crucial resistance points that, if surpassed, could signal a strong upward momentum in the market.

Another major event will be the RBI MPC so what are your expectations and how should one trade in rate sensitive sectors?
It is more likely that the RBI will keep interest rates unchanged. In rate-sensitive sectors such as banking, real estate, and automobiles, investors should remain cautious but look for opportunities in fundamentally strong stocks. Maintaining a balanced portfolio with exposure to quality companies in these sectors can help mitigate risks associated with potential market fluctuations following the RBI’s decision.

The top gainers this week were Finolex Cables, Emami and Glenmark Pharma while Ipca Lab, Naukri and DMart have been among major laggards. What should investors do with them?
Investors should continue holding Finolex Cables, Emami, and Glenmark Pharma, as the fundamentals of these companies are strong. For those with short-term positions, it’s advisable to set stop losses to manage risk: 1100 for Ipca Lab, 5550 for Naukri, and 4200 for DMart. For the gainers, such as Finolex Cables, Emami, and Glenmark Pharma, investors can trail their stop losses with each upward move in the stock to protect gains while allowing for potential further appreciation.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)