It was a party on Dalal Street with the Nifty and Sensex posting their biggest weekly gains since the budget in February. Forty-seven out of the 50 stocks on the Nifty gave positive returns. The Midcap Index rose for the 5th straight week.

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CNBC-TV18 spoke to Ajay Srivastava, CEO of Dimensions Corp Finance, for his take on the week gone by while Jai Bala of Cashthechaos gives the technicals for the week to come.

Srivastava said, “This momentum continues from the global momentum that is very clear. The US Indices are held to all-time highs, we should be also doing the same thing. There is no doubt about it, because the liquidity is awash. At this point of time, the kind of money flows that we are seeing is just beyond imagination and the global money flows, which coming through the IPO may not show up too much in the secondary market, but definitely on the IPO side, on the private equity side, those flows are very visible on the ground.”

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He added, “We are in a scenario where we are having so much liquidity coming in, domestically, also people have nowhere else to go, nobody is setting up businesses by and large, whatever money they have they want to get and put it in. Gold is off the table at this point of time so where do you go, you go to equity, and that is what the story is all about.”

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On Reliance, Srivastava said, “This is a stock, which always surprises you, in the end. It doesn't do anything, you always give it up and it comes back. I think the greatest positive has been in this talk, I know what is re-rating it and why people do it. Of course this hydrogen project, which is to come up should be a big, big, big, absolutely big change for the company and the shareholders."

"So this story has gone into a different tangent if he is talking about hydrogen and moving away from fossil fuels and doing a joint venture with the Gulf, the trajectory has changed totally in this whole thing. Therefore, I think you will find reluctant investors coming back to Reliance. Unfortunately, it used to be a favourite once upon a time, no more favourite, nobody talks about Reliance by and large and therefore the stock languishes, but I think the re-rating is on the way and you will see new fresh highs in the stock.”

On big trades for next week, Jai Bala said, “I think BHEL has got a very big move coming, it is had a sizable move over the last few weeks and sizable correction, which followed that. I think that is shaping up for a very big move towards Rs 80 plus, so one can place a stop below Rs 49 and hold that. On IT space, Affle is very good, at least one risk-reward potential. But you have to be very conscious that this stock has got very low liquidity, and it has got a 5 percent circuit filter. So you got to be very conscious of what you are allocating and how much you are allocating.”

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First Published:Sept 3, 2021 6:48 PM IST