These Stocks Are Still Hot

Hello friends. This is Vijay Bhambwani here and I am recording this video with the happy tidings of the market having seen the Nifty cross over the mount 16,000 and its crossed that level fairly convincingly. It closed convincingly higher than 16,000 and what a way it took out all the doubts from naysayer's minds.

In this video, I want to talk to you about the road ahead. Now that Nifty is at a new all-time high, it surpassed the round figure, which is a psychological hurdle that the Nifty was facing what's hot? What's not? That must be the prime question on the top of your mind recall as to where to lay your chips on the market's chessboard so that your returns are optimal.

In this video, I've devised a way of kind of working around the limitations that compliance department tells me, because I cannot recommend individual stocks in the public domain. However, like I did recently in my video on the Public Sector Enterprises or PSE, I'm gonna take the index approach and tell you which indices hold a lot more promise as compared, relatively compared, to the others.

It doesn't take you too much time to Google search the components stocks of those relative indices and then lay or bets accordingly. It's a win-win situation. I've basically expressed my view without violating any compliance norms, and you have good new horses to bet your money on. So let's dive right in and take this forward, all right?

So after the Nifty 50 let's take a look at the other indices and I start with the Nifty 100 Index. Currently, it's trading at an all-time high, and these are 1st and 2nd rung largecap companies that constitute this index.

As long as this index stays above its support level at the 15,300 mark, I think the first 3 to first 5 strongest stocks which constitute this index, should be doing just fine.

Let's now go to an even broader braced index, the Nifty 500 Index. This is also trading at an all-time high, and I expect support at 12,900 levels. The rally is therefore fairly broad based because you have the Nifty 100 and the Nifty 500 both, obviously 500 would mean 100, so the Nifty 500 index trading at an all-time high tells you that the optimism is fairly broad spectrum, which is what we need.

Now the Nifty Alpha 50. Please don't get confused with the names. Be very, very careful about what names I am mentioning here. There are many indices which are similar sounding, but I am being as specific as possible. So I am telling you, Nifty Alpha 50.

Now here, the world Alpha tells you that the index itself is trying to capture your profitability from high growth stocks, and as long as this index stays above the 25,400 levels, you should be doing fine. The composite stocks should be good bets.

The Nifty Auto index is showing some kind of resistance and 11,000 mark, and this is of course an approximate level. Unless it starts to trade above the 11,200-11,400 levels, which will take out all doubts that the auto index is now above its resistance, till then, I think the composite stocks might just consolidate. I am using the word consolidate, not bearish.

Now let's go to the Nifty Bank Index or the Bank Nifty Index as old timers call it. Now this index, like I have recorded in my previous videos, has been underperforming the markets and, as a matter of fact, had it not been the lagging a composite stocks of the Bank Nifty, the Nifty itself would have been far higher and much earlier for the simple reason that the weightage of the financial sector services in the Nifty is more than a third, one third.

So Nifty Bank is underperforming. I expect the support to be close to 33,500 give and take. As long as it holds about that, you always have a fighting chance of it going up.

Now the Nifty Commodities Index. Do remember this is different from Nifty Metals. I'm using the word commodities. Commodities is a generic and broad based term. This index is also at an all-time high, and I expect support and 4,800 levels. As long as the stays above that, all is fine.

The Nifty Energy Index. It's back below its all-time high, and it will be a market performer, which means it will give you average returns along with the average broader based indices at best for now, unless it starts to rise in percentage terms faster and higher than the Nifty 50. Then we will take a re-look later.

Now financial services. It's consolidating since 2021 and the Nifty Financial Services index is basically also comprising of banking services NBFCs stocks, etc. If you remember a few days ago, I had made a video on how to day trade NBFC stocks. I explained to you why I expect the NBFC stocks to be somewhat lagging because of the cost of raising funds rising in the near term. So this index might just consolidate or lag a little.

The Nifty FMCG index. Fast moving consumer goods. Now there is another video that I had made about which sectors to bet on in the market because I was telling you that over the long term, there are certain sectors which will do better than the others and FMCG, I definitely remember, was one of them.

Now the FMCG index is at an all-time high. The support will be at 35,000 levels, give or take and if you Google search the composite stocks, choose top three or the top five strongest companies and then evaluate those as prospective investments.

Now the Nifty Consumption index. This is also at an all-time high, with support and 6,100 levels. Here again, the composite stocks will stand you in good stead.

Nifty Infra index. Which is again at an all-time high because construction activity and infrastructure activity is picking up and the support is at 4,200 levels. As long as this level holds, I think they are going to be doing just fine.

The Nifty IT index on the technology companies TCS, Wipro, etc. This is again at an all-time high and this index has been performing extremely well ever since the lockdown was imposed because the technology companies don't really get impacted much by your day to day discomforts of convenience and travelling etc. So here again, support at the Nifty IT index would come at 27,250 odd levels. As long as this level holds were going to be doing just fine.

The Nifty Metals Index, which is again at an all-time high, with support at 5,000. So these stocks should also be doing fairly okay.

The Nifty multinational companies of the Nifty MNC Index. At an all-time high, with the support at 17,000. This should also present you with opportunities.

Now the Nifty Pharma. Again and an all-time high, although off late it seeing a little bit, just a little bit of profit taking but even in this phase of profit taking, as long as it stays about 13,650 levels, I think it should be doing just fine.

The Nifty Private Bank index. It's making lower tops. Now, here again, do remember that banking as a sector I have made videos on as to why banks might just underperform the broader markets and drag the Nifty 50. So be careful on the Nifty private banking space unless the index forms higher highs and breaks out above the all-time recent swing high, do not deploy our money in a hurry. If you're holding stocks that comprised the nifty private banks, there's nothing to worry. It's not in a bear market, is just consolidating.

Now the Nifty Reality property developers, etc. At an all-time high with support at 350 levels. The composite stocks should also be doing just fine. So here again choose the top couple of stocks and then ride the wave up.

Friends, I think I've given you enough kind of options, enough broad spectrum of ideas, which you can work on. It's just a matter of 10 minutes before you google search composite stocks of these indices and find out the best bets for yourself.

I wish you have a very, very profitable day, but also a reminder. I hope you're gonna lock the date. 9th August 2021, 5pm. Please join me for my online webinar on Equitymaster.com wherein I'll present you investment avenues that should provide you far above average returns. So I hope to see you there.

Now friends before I bid goodbye to you, I wish to remind you to subscribe to my YouTube channel if you haven't already done so. Click on the bell icon to receive instant alerts about fresh videos being put up out here.

In the comments section, do let me know what you think about this video. Good, bad, ugly, keep it all coming and refer my video to your family and friends and help me reach out to fellow like-minded investors.

Thank you for your patience. Till we meet again in my next, this is Vijay Bhambwani signing off for now. Bye.