JATIN GEDIA
TECHNICAL RESEARCH ANALYST, SHAREKHAN
Where is the Nifty headed?
The recent fall has been nearly 1,600 points or 6%, and hence there is a high probability of a short-term bottom being in place at 24,694. Extreme readings on the short-term sentiment indicators and the Nifty weekly put call ratio (open interest) reading of 0.59 indicate that the Nifty is oversold and has a high probability of a pullback towards 25,360-25,535 during the week. Multiple technical parameters and derivative data points suggest that the Nifty may trade with a positive bias. Hence, one can consider long positions in the Nifty for the target of 25,234- 25,360 with a stop loss placed at 24,850. What should investors do?
We believe investors should consider the fall as an opportunity to add large-cap stocks to their portfolios. Sectorally, we like pharma, IT, auto, metals and realty. PSU Bank Index which has been underperforming recently could be the dark horse and can surprise on the upside from a short-term perspective. The recent fall in some of the key heavyweights like ICICI Bank, L&T, HUL, SBI, Hero MotoCorp, BHEL and Asian Paints is providing a good opportunity to add to an existing portfolio.
ARPAN SHAH
SENIOR RESEARCH ANALYST, MONARCH NETWORTH CAPITAL Where is the Nifty headed?
Nifty had given up its all-time high of 26,277 and reached near September low of 24,753. In the last 10 trading sessions, FIIs sold `69,395 crore in the cash segment, and the index future longs have reduced to 35% from the September high of 82%. As both indices have reached near monthly support levels, along with current oversold positions, traders can expect a bounce from the current level. Nifty may bounce toward the 25,250-25,500 level and Bank Nifty to 52,200-52,800 in the coming days.
What should investors do?
The IT sector is consolidating within a range and is likely to provide breakouts led by Infosys and HCL Technologies in the coming days. The metal index is trading near its all-time high, and it can provide a strong upside in the coming days. Traders can accumulate Hindustan Copper, SAIL and National Aluminium at current levels. Among the banking pack, ICICI Bank is trading near the support level and can be added at the current level. Among pharma, Cipla and Syngene can be added at the current levels. Mid and small-cap indices have given pullback from recent highs and stocks are trading near their support levels. Investors can accumulate Godawari Power, HFCL, FIEM Industries, Indegene and Exicom TeleSystems at the current levels.
SACCHITANAND UTTEKAR
VP-TECHNICAL & DERIVATIVES, TRADEBULLS SECURITIES
Where is the Nifty headed?
Over the past 11 months, the Nifty has consistently defended its 5-month exponential moving average (EMA), signalling a strong bullish undertone. The latest corrective wave has stabilised near 24,760 (the latest 5-month EMA support base). A confi rmed close above 25,140 could signal an upward move towards 25,740, presenting yet another buying opportunity within the secular bullish trend which remains on course towards 27,255. The index sustaining above the key 25,000 mark further underscores its growing strength, which coincides with the options data and the daily ADX reading of 38 and RSI of 43, indicating room for momentum to improve.
What should investors do?
Technically, early signs of a trend reversal are emerging, and traders should stay cautiously optimistic, awaiting stronger price confi rmation before taking aggressive bullish positions. As the earnings season kicks off, expectations are focused on steady performance in IT, banking, and fi nancial sectors, with global rate cuts likely benefi ting these industries. Consumer sectors may see margin improvements from lower input costs even as infl ation and geopolitical concerns remain. Nifty PSE and Nifty Financial Services are again showing strength apart from the Nifty Pharma and Nifty Auto which have done well so far, offering further favourable opportunities during this latest decline. Key stocks to watch out for are Kotak Bank, SBI, HAL, Concor, BHEL, Bajaj Finance, Maruti, Ashok Leyland, ABFRL and Trent, which look well-positioned for long-term gains.