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Axis Bank, Bharat Forge, IOC may be in limelight today

Market focus on Q2 results has diluted, however, we may see outperformance in the broader market due to bargain opportunity

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Axis Bank, Bharat Forge, IOC may be in limelight today
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Bull market or bear market?

The market is likely to trade in range bound manner with a positive bias. The trading range would be between 10300-10450 levels. Market focus on Q2 results has diluted, however, we may see outperformance in the broader market due to bargain opportunity. The US waiver for India from Iran sanctions and fall in crude prices will support overall sentiments.

Stocks likely to be in limelight today?

Axis Bank, Bharat Forge and Indian Oil Corporation (IOC).

Sectors likely to impact market today?

IT and Pharma sector are likely to witness selling pressure with the strengthening of the rupee. Banks and Financials may see some short covering with fall in yields. Fall in Brent prices may support overall sentiments and OMCs stocks might see some gains.

Your mid-term view?

Though volatility is high some positive momentum is building up. Currently, mid and small cap stocks are outperforming due to moderation in valuation. This rally can get extended to 10600 to 10700 supported by fall in crude prices and appreciation of the rupee. Having said that global factors like trade war, rising cost of funds and slow down in global growth will be an overhang.

What drove markets on Thursday?

Key indices ended on a flat note on Thursday despite fall in the oil prices and strengthening in the rupee. However, signs of a turnaround were visible in the mid and small cap which outperformed the main indices.

Vinod Nair, head of research, Geojit Financial Services

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