KAPIL SHAH
TECHNICAL ANALYST, EMKAY GLOBAL FINANCIAL SERVICES
Where is the Nifty headed?
The current market trend has been showing signs of losing momentum, as evidenced by the sloppy ascent of the rise and the shrinkage of the size of candles. The index has been trading within a range of 21,800 to 22,800 for the past 11 weeks, and it is currently located at the lower band of the rising channel. However, a bullish confirmation will occur if the index crosses the 22,150 level while moving below 21,950 could lead to further selling pressure, likely up to 21,770. Bank Nifty has continued to underperform, with potential support lying around 47,000. It will remain under pressure if it sustains below 48,300. What should investors do?
The auto sector has maintained a bull run, and fresh, bullish participation has been observed from the FMCG and MNC spaces. Conversely, PSU banks and the Oil & Gas sector have experienced strong selling pressure. The Nifty FMCG appears to be a safer investment, with the FMCG index technically retesting a strong base followed by moving average support. Furthermore, stocks such as HUL and Emami could extend their upward movement, and others like Sun TV and ICICI Prudential have recently experienced a fresh bullish breakout.
ARPAN SHAH
SENIOR RESEARCH ANALYST, MONARCH NETWORTH CAPITAL
Where is the Nifty headed?
Nifty corrected sharply from its recent high and reached the 22,000 level. It has strong support near the 22,700-22,800 zone, and a further sell-off towards it will be a buying opportunity on the index front. Bank Nifty also has trendline support at the 46,600 level, and a dip towards this level will attract buying opportunities. Nifty is likely to cross 22,800, and Bank Nifty will cross 50,000 by the end of the May series. Both indices are likely to witness a pullback in the coming days. However, India’s VIX has bounced sharply from a recent low of 10 and reached a near 19 level, which indicates heightened volatility in the coming days.
What should investors do?
Nifty FMCG index has outperformed the benchmark index, and stocks like Britannia and HUL are buying opportunities at the current level. Among pharma stocks, Syngene has reached near to its support level and can be accumulated in the Rs 650-680 zone. Large-cap stocks like SBI and TCS can be added at the current level. Midcaps like Fiem Industries, Vinati Organics and GMR Airports can be added at the current level. Adani Energy, Swan Energy and Vodafone Idea are high beta positional bets at the current level, which can provide strong returns from the current level.
MEHUL KOTHARI
TECHNICAL ANALYST, ANAND RATHI INVESTMENT SERVICES
Where is the Nifty headed?
Technically, the index has approached the lower band of the rising channel. A breach of the same can be a sign of some seriousness in the markets. Going ahead, below 21,900, the previous swing low of 21,777 would be under threat, which ultimately might result in panic in the market. On the other hand, the FII long-short ratio in the index futures was around 32% till Thursday’s session. This indicates that we are approaching oversold terrain. The upside resistance is placed at 22,300, and a close above the same might confirm the bottom till the election results. The Nifty Bank index is approaching the 47,000 mark, which is the support of a rising trend line as well as a curved trend line, and hence would be a decisive support for the coming week. A breach might dampen the sentiments, whereas if this support is held, then the index would again start its upside journey.
What should investors do?
On the stock front, there was a major breakout in Astral from the triangle pattern, and the stock confirmed a breakout from the bullish flag pattern. Thus, we advise traders to go long in the stock near Rs 2,140 with a stop loss of Rs 1,999 for the upside target of Rs 2,420 in the coming months.