Midcaps outperform as key indices await fresh momentum; Tata Motors, Havells among top trading bets

Market sentiment continues to remain cautiously optimistic with the Nifty showing resilience despite sluggish moves in the benchmark indices. According to Rajesh Bhosale, the undertone remains strong, and the index could soon be eyeing the 25,000 mark.

“So, if we see just the key indices, not much is happening on the Nifty or Bank Nifty front. We are trading a bit sluggish, but the undertone is very strong and we expect Nifty to gradually move towards the 25,000 levels and on the downside if we see prices are holding above key short-term moving averages, so any dip should be considered as a buying opportunity. On the lower side if we see 24,700, 24,650 seems to be a strong base now and as I said, gradually, we are likely to head towards 25,000,” Bhosale said in an interview to ET Now.

He added that the real action lies in the midcap segment, which is already outperforming. “The real momentum in key indices will trigger once Nifty crosses 25,000. Having said that, if we see a midcap space, that is up by 1% and real action lies there and one should focus on those fronts,” he noted.

Trading Ideas: Tata Motors and Havells in Focus

Bhosale highlighted autos as a key pocket to watch, with Tata Motors and Havells emerging as strong trading opportunities.

“So, if we see auto, auto packs are doing very well and we are expecting this performance to continue. One counter especially that has not performed well in this rally is Tata Motors, but now in today’s session we are seeing prices breaking out of a key trading range. Tata Motors is now breaking above 200 DMA that was last seen on October 24. So, now we are seeing a price and volume breakout and this stock is likely to join its peers, so with a stop loss of 697 Tata Motors can be bought, 745 is what we are expecting in the near term,” he explained.

On Havells, he sees a similar bullish pattern. “My second buy call is on Havells, similar kind of structure is seen on Havells where a cup and handle pattern is seen and prices are trading above its 200 DMA, strong volume delivery based volume is happening in Havells, so Havells can be bought with a stop loss of 1565, the target that we are expecting in the near term is 1660,” Bhosale said.

With midcaps showing strength and selective counters breaking key levels, the broader market seems set for gradual gains even as traders keep an eye on Nifty’s march towards 25,000.