3002: Hot Stocks | ICICI Prudential, Siemens can give up to 14% return in short term
Nifty witnessed high volatility due to rollover movement on October FaO expiry day amid negative global cues on October 29. During this week, the index failed to break the round number resistance of 12,000 and witnessed sharp profit-booking in the index pivotal. Bank Nifty outperformed the broader markets and gained 17.8 percent while Nifty gained 8 percent in the October FaO series. Among other sectors, IT gained 10 percent, Metals 9.3 percent and Auto 5 percent. Pharma and FMCG remained flat to negative, trading sideways, witnessing a time correction over the last few weeks. Nifty closed at a 3-week low at 11,671 on October 29 and the breakdown of the 50-day average at 11,540 would accelerate the second round of profit-booking pushing the index lower to 11,200. On the higher side, a crossover of 12,000 would give a sharp breakout for a new high. Mid-caps and small-caps may outperform. India VIX has closed at a 3-month high at 24 levels and we expect volatility to increase with news flow of fresh lockdown due to COVID-19 in various parts of the world and presidential elections outcome in the USA next week.
