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Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Indian equity markets continued their positive momentum, with benchmark indices edging closer to record highs, even as resistance emerged near the 26,000 mark. Market participants remained encouraged by the broader strength across sectors and improving sentiment following recent global and domestic developments.

Speaking to ET Now, market expert Vinay Rajani from HDFC Securities highlighted the technical resilience of the Nifty, pointing to a strong recovery from recent lows. “So, nice recovery from the lower level. Nifty partially filled the gap which was formed on the 3rd February on the back of the US-India trade deal and that gap was partially filled and Nifty bounced back. So, a typical gap has acted as a support area and now Nifty has witnessed a 500 points recovery from that level,” he said.

Rajani added that the index remains structurally strong, supported by key technical indicators. “So, Nifty is looking very strong as it is still holding above 20, 50, 100, and 200 days’ moving average, so that way also it is very strong,” he noted.

He also pointed out that broader markets are beginning to participate more actively in the rally, aided by the nearing end of the earnings season. “Broader markets are gaining strength. We are at the fag end of the result season, getting over, so that is also a good sign for the broader markets because most of the negatives and positives have been discounted and now broader market can increase their participation in this rally,” Rajani said.

On the outlook for the benchmark index, Rajani maintained a bullish stance, citing strong support levels. “So, on the Nifty we are bullish. We feel that there is a strong support around 25,600 and with that stop loss one should continue to hold on to the long position and we are expecting Nifty to hit an all-time high above 26,373. So, overall, things are quite strong and broader markets have started participating. So, we are bullish on the market with a stop loss of 25,600,” he added.

Turning to sectoral and stock-specific opportunities, Rajani said metals remain a clear outperformer in the current market phase. “Yes, so metal is the space which is continuously outperforming. So, out of that segment steel stocks have started performing well and getting momentum on the charts,” he said.
He highlighted Steel Authority of India (SAIL) as a preferred trading pick. “So, Steel Authority of India, SAIL, is looking very strong to me. Around 160 one can take entry, for trading stop loss can be kept at 157, on the upside I am expecting a short-term target at 166,” Rajani said.In the PSU banking space, Rajani identified Bank of Maharashtra as another stock showing strength. “The second stock I would pick from the PSU banking space, that is Bank of Maharashtra, which is looking quite strong. So, after some small consolidation it is trying to resume its primary uptrend. So, around 66.80, 66.90 one can go long, I would suggest a stop loss at 65 for the trading, on the upside I am expecting an immediate target at 70,” he added.

With both frontline and broader indices showing sustained strength, market participants remain cautiously optimistic, watching key resistance levels while selectively focusing on outperforming sectors such as metals and PSU banks.

This article was written by

Analyst’s Disclosure: I/we have a beneficial long position in the shares of WPM, SILJ, AG, PAAS, SVM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

It has invested in HSBC Asset Management’s UK Direct Lending Fund.

Motor insurance to loans group Admiral has backed a fund designed to support the growth of mid-market firms across the UK. Wales’ only FTSE 100 headquartered business has invested into HSBC Asset Management’s UK Direct Lending Fund.

The debt fund has provided vital capital to many UK businesses, including school meal provider, Impact Food Group, and Chepstow headquartered telecommunications hardware recycling business, TXO. This has enabled both businesses to expand their operations and customer base.

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Woking-based Impact Food Group, which was fund backed last year is a food supplier of high nutritional school meals with a focus on limiting food waste and reducing its carbon footprint.

TXO is a provider of telecom asset recycling and other services which support the transition towards a circular economy by reducing waste. TXO’s services extend the life of critical equipment, lessening the environmental impact associated with production cycles.

Mid-market companies, which typically have revenues from £25m to £500m, are the economic engine of the UK, fuelling local job creation and innovation. Admiral has not disclosed the level of its investment into the debt fund.

Geraint Jones, Admiral Group chief financial officer: “Our investment demonstrates our commitment to operating in a sustainable way and enables us to help even more people to look after their future by supporting businesses which make a significant impact in communities. It has been great to see the on-the-ground impact of the Fund and showcase that our investments can generate attractive financial returns and positive change for society.”

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Frank Bandura, Impact Food Group chief financial officer: “We aim to transform lives through the power of food – ensuring that every meal we serve makes our students happy, better able to attend, focus and enjoy school and leads them to achieve better outcomes. The funding structure from HSBC and their investors has enabled our business to scale rapidly, furthering our impact on students.”

Deepak Seeburrun, head of global insurance and partnerships, HSBC Asset Management: “We are incredibly proud of the success of our Direct Lending platform to date, and delighted to have the continued support of Admiral, alongside many other clients. Our partnership approach provides unique access to UK mid-market loans, combining the skill and experience of HSBC AM’s Direct Lending investment team, and the unparalleled market position of HSBC UK Bank.”