Stocks for the week: August 4th Week | 2024 | Vijay Thakkar

Summary

The video script by Vijay Thakkar discusses market trends and sectors, focusing on a potential investment in an IT sector stock, Tech Mahindra. He outlines technical and fundamental reasons for the investment, including the stock's performance, market cap, and promoter holdings. Thakkar also speculates on the impact of US market interest rates on IT stocks and shares his personal views and calculations on the stock's potential for a breakout, emphasizing the importance of viewer's own analysis before investing.

Takeaways

• 📈 The speaker, Vijay Thakur, discusses the market trends and sectors, indicating a positive movement in the market last week due to a rally in the US market.
• 📊 The Nifty index and Bank Nifty are analyzed, with the speaker noting that Bank Nifty seems to be lagging slightly behind Nifty on a monthly basis.
• 📉 The speaker mentions a major resistance level at 243504.686, which is crucial for the market's short-term direction.
• 📚 The importance of watching the overall market high level is emphasized, as it could indicate the market's next move.
• 📊 The speaker provides a technical analysis of the market, suggesting that if the market doesn't open well and goes down, it might cross a bad phase.
• 🚗 The auto sector is highlighted as having performed well, with a significant breakout from its 2017 levels, trading around 27000, showing a 126% return post-breakout.
• 💻 The IT sector is discussed as having made a new high in 2022 and is currently attempting to break its all-time high, with the speaker considering investing in an IT stock.
• 💹 The speaker shares a personal investment idea based on the US market's interest rates, suggesting that if rates cut, IT stocks could rally.
• 📈 The potential for a 70-80% gain in the next 1.5 years is mentioned if the investment thesis is correct, but also acknowledges the risk of a 10-12% loss.
• 📉 The speaker advises that if the stock goes weak below 4700, it might be time to withdraw the investment.
• 📝 The speaker concludes by emphasizing that the shared information is personal view and encourages viewers to do their analysis before investing.

Q & A

What is the main topic discussed in the video by Vijay Thakur?

The main topic discussed in the video is the analysis of the stock market, sectors, and a particular stock that the speaker considers for his next investment.

What was the market trend observed in the last week according to the video?

The market had a sideways movement with a positive bias in the last week, influenced by the US market rally, which led to a gap-up opening and a good close on Friday.

What is the significance of the gap-up opening mentioned in the video?

The gap-up opening is significant as it indicates strong buying interest, which was influenced by a good rally in the US market.

Which sectors performed well and which did not, as discussed in the video?

IT, Realty, Auto Sector, and Services Sector performed well, while PSU Banks, Media, and CPSI Indices were among the sectors that did not perform well.

What is the technical and fundamental reasoning behind the speaker's investment choice in the IT sector stock?

The speaker's technical reasoning includes the stock's all-time high level, trend line breaks, and recent range attempts. Fundamentally, the company has a good market cap, promoter holding, and consistent profit growth.

What is the potential upside and risk involved in the IT sector stock mentioned by the speaker?

The potential upside is significant, with the stock possibly reaching up to 70% or more gains in the next 1.5 years. The risk involves a 10-12% loss if the investment thesis is incorrect.

What is the speaker's view on the US market's interest rates and its potential impact on IT stocks?

The speaker expects a cut in interest rates in the September-October months, which could lead to a rally in IT stocks, both in the US and potentially in India.

What is the speaker's strategy if the stock breaks its all-time high?

If the stock breaks its all-time high, the speaker plans to pyramid, or increase his investment, as the stock would become even stronger technically.

What disclaimer does the speaker provide regarding his personal views and investment decisions?

The speaker clarifies that his views are personal, and while he shares his analysis and reasoning, he may be wrong. He advises viewers to do their own analysis before making any investment decisions.

What additional service does the speaker offer for those interested in learning more about investments and trading?

The speaker offers a one-year program where he discusses various aspects of investments, sectors to focus on, and why certain sectors like Auto might not be the focus at the moment.

How can viewers stay updated with the speaker's content and potentially subscribe to his program?

Viewers can like, share, and subscribe to the speaker's channel. The link to subscribe to the program is provided in the video description.