SAMEET CHAVAN
HEAD RESEARCH-TECHNICAL AND DERIVATIVES, ANGEL ONE
Where is Nifty headed?
Throughout the last week, the Nifty encountered resistance around the 19,850-19,900 zone, near the previous swing high. To initiate momentum, a convincing breakthrough beyond these levels is required, potentially paving the way for a fresh upward movement towards 20,000 and beyond in the short term. Conversely, prices had already surpassed a key trend line resistance, leading to a buy on a minor dip during the last week. The breakout zone, coinciding with a bullish gap at 19,580-19,500, is viewed as robust support, and prices also defended the 19,700 level during the week, serving as immediate support.
What should investors do?
We recommend buying Jindal Stainless around Rs 538-535 for a target of Rs 580 with a strict stop loss at Rs 514. Cholamandalam Investment looks a bit weak. In the week gone by, the stock finally touched below the strong support zone of the 89-day exponential moving average (EMA) placed at Rs 1,140. On Friday, there was yet another breakdown, which is an indication of extending this down move. It can be sold for a target of Rs 1,050 with a stop loss of Rs 1,124.
SUDEEP SHAH
HEAD-TECHNICAL AND DERIVATIVE RESEARCH, SBI SECURITIES
Where is the Nifty headed?
Technically, we feel that the 20-day EMA zone of 19,580-19,630 could act as an important support area, while resistance on the upside is seen at the 19,880-19,900 zone. A decisive move above 19,900 levels can take the index to 20,100-20,250 levels. Based on the option chain data, Nifty is expected to trade in a broader range of 19,600-20,000 for the coming week. The key trigger would be the results of the just-concluded state elections. With the index expected to consolidate and momentum being visible in broader markets, adopt a stock-specific approach and look to add quality stocks that are currently outperforming the market. What should investors do?
We expect select stocks from CPSE, power, realty, defence, pharma, oil and gas, and auto to outperform with positive trade-set-up visible in select large-caps such as Bharti Airtel, Bajaj Auto, NTPC, RIL and Lupin. On the mid-cap front, BHEL, Divi’s Lab, Bharat Forge, GMR Infra, HAL, HPCL and Oberoi Realty may continue to see strong buying interest.
MEHUL KOTHARI
AVP-TECHNICAL RESEARCH, ANAND RATHI SHARES & STOCK BROKERS
Where is the Nifty headed?
Technically, nothing changed last week since the Nifty was range-bound. Hence, we maintain our stance that the view remains buy on dips. The recent consolidation seems to be just a time-wise correction since the index has rallied 1,000 points in a short span. In the event of profit booking, 19,500-19,400 might act as initial support for the coming week. On the upside, a move above 19,900 can result in an extended rally, which can take the index towards new life high. Even the Nifty Bank index remained extremely flat. In the coming weeks, only a move above a swing high of 44,420 might reinforce start of a new uptrend. On the downside, immediate support is at 43,000, and a breach might drag the index towards 42,000.
What should investors do?
Although the benchmark indices are having a breather now, there is too much traction in individual stocks. Traders are advised to focus on stock-specific opportunities. So far, we are bullish on a few stocks like Subros and Manyavar. Both the stocks are expected to move 5-10% on a positional basis.