“The strong presence of Put writers at 46,000 has helped the index to stay in positive territory. The trend is anticipated to stay bullish as long as the Bank Nifty remains above the 46,000 mark. In the short term, there is potential for the Bank Nifty to reach levels around 46,700 and 47,000 on the upside,” he said.
Edited excerpts from a chat:
We saw Nifty getting huge support from banks and IT stocks during the week. Do you see strong resistance coming around the 20,200-level or will the momentum continue towards 20,500?
Nifty continued to exhibit strength as the index reached new highs due to large-cap banks and IT stocks. Strong Put writing at 20,100 has further bolstered positive sentiment in the market. The trend is expected to remain positive as long as the Nifty remains above the 20,000 mark. In the short term, there is potential for the Nifty to move towards the 20,480-20,500 range on the upside.
While both Sensex and Nifty have hit new highs, Nifty Bank is yet to drive past its previous peak of 46,369.50 touched on 24 July. How to trade the banking index now?
The sentiment remains positive as the Bank Nifty approaches its all-time high. The strong presence of Put writers at 46,000 has helped the index to stay in positive territory. The trend is anticipated to stay bullish as long as the Bank Nifty remains above the 46,000 mark. In the short term, there is potential for the Bank Nifty to reach levels around 46,700 and 47,000 on the upside.While other PSU stocks succumbed to bears, PSU banks are unstoppable. How do you explain Dalal Street’s love with sarkari bank stocks. Do some chart reading for us please.
While some PSU names like BEL, BHEL, RITES, and HAL experienced profit-taking during the week after a strong performance over the previous few weeks, PSU Banks, on the other hand, continue to rally due to persistent interest in government-owned banks.
UCO Bank has recently broken out from its previous swing high on the weekly chart, indicating a potentially strong upward movement in the short term. Bullish breakouts are also evident in PNB, Maharashtra Bank, and Union Bank.
ITI Ltd came out of nowhere to rally over 50% and become the best performing BSE500 stock in the week on announcement of new laptops and micro PCs. Do you see more steam left in the next few days?
ITI has recently experienced a multi-week breakout, driven by a recent news update. The stock appears to be quite bullish. However, given the recent strong rally, it is advisable to consider entering the stock after a period of consolidation or correction. This approach provides more room to manage risks more effectively.
The momentum in IRFC shares slowed down after Tuesday’s sell-off in the broader market. How would you trade the stock in the week ahead?
IRFC has undergone a consolidation phase over the last few days, following a remarkable rally in the preceding weeks. It appears that the stock may continue to consolidate for a few more days before resuming its upward trajectory. It could be a prudent strategy to consider entering the stock once the consolidation concludes with an upward breakout.
Give us your top trading ideas for the week.
Buy FACT at Rs 565. Target price Rs 600. Stop loss Rs 544
FACT has risen above the recent consolidation phase, driven by growing bullish sentiment for the stock. Furthermore, it has maintained its position above a crucial moving average. Looking ahead, there is a possibility that the stock could reach the 600 level. On the downside, there is solid support at 544.
Buy GIC Re at Rs 235. Target price Rs 270. Stop loss Rs 223
GIC Re has surged above the recent swing high, driven by a notable increase in bullish sentiment for the stock. The bullish crossovers of the 21EMA and 55EMA have further reinforced this positive sentiment. Additionally, the RSI has entered into a bullish crossover. Looking ahead, there is potential for the stock to make a move towards the 270 mark. On the lower end, solid support is positioned at 223.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)