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Below the views on today’s NIFTY Indices movement of Mr. Pritesh Mehta Executive Vice President – Institutional Research, YES Securities

There is a sudden change in relative strength of Nifty vs Midcap 100 index as it has reversed after recording a low below 2018 low, which implies comeback of index stocks. Our Customized Nifty Top 10 index has also surpassed peak of July 23’. Recent comeback in our customized index after a phase of sideways correction implies contribution of big boys. We expect similar theme to persist for next few weeks with Nifty expected to rally towards 20,400 zone. HDFC Bank, Axis Bank & TCS from the largecaps universe are showing multiple bullish structures, implying possible leadership within these stocks. IT & Auto indices will be interesting themes going ahead. Select auto stocks are discernibly showing strength. Though Nifty Auto index has rallied by ~ 30% on YTD basis, broader ratio chart of autos vs Nifty shows a breakout off a multi-year maturing phase. It implies continuation of autos’ outperformance. Both these indices are showing relative outperformance vis-à-vis Nifty. Majority of midcap (our customized Tier 2 IT index) are looking up too. Since April 23’, our customized Tier 2 IT index has seen sharp upticks. In the process, it confirmed a break above one-year trading range, implying further upside.”

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