RUCHIT JAIN
LEAD RESEARCH, 5PAISA.COM
Where is Nifty headed?
Nifty ended last week at its highest point, indicating a continuation of the uptrend. FIIs started this series with short positions, but as the index marched higher, they covered some of their shorts and added longs. The RSI oscillator is positive and hints at a continuation of the momentum. The immediate support for Nifty is around the 22,200 mark, while positional support is around the 22,000-21,900. In the last couple of months, the 40-DEMA has acted as a sacrosanct support on declines, which is now around 21,920. Thus, till the above supports are intact, the broader trend remains positive. On the higher side, retracements of the recent correction indicate a possible target of around 22,720, followed by 23,000-23,100.
What Should Investors Do?
Traders are advised to continue trading with a positive bias until any reversal signs are seen. Midcap and smallcap indices are going through a time-wise corrective phase; one should be very selective in stock picking. Aarti Industries is trading at support, Pidilite has given a breakout above its resistance, and Marico has formed a bullish engulfing pattern at its support. Traders can look for buying opportunities here.
SAMEET CHAVAN
HEAD RESEARCH – TECHNICAL & DERIVATIVES, ANGEL ONEWhere is Nifty headed?
The index has managed to hold the higher ground, and dips augured well for the bulls. Still, the range is narrowing as we head into uncharted territory, which might be a sign of caution. For now, 22,250-22,200 is likely to be seen as intermediate support, followed by the strong support of 22,150 and finally, the psychological mark of 22,000 from a broader term view. On the higher end, finding resistance is challenging in uncharted territory, though 22,600-22,650 could be seen as the next possible levels for Nifty in the upcoming week. What should investors do?
Traders should now take stock-centric views. With Friday’s strong upsurge above Rs 613, HDFC Life is about to break out from the congestion zone. In addition, the formation of the ‘1-2-3’ pattern is visible on daily chart. We recommend buying for a target of Rs 660 with a stop loss of Rs 598. Oracle Financial Services has been maintaining its sturdy structure for a while now. On daily chart, yet another ‘bullish flag’ pattern seems to have unfolded after confirming a breakout from the key hurdle of Rs 8,150 on a closing basis. Buy for a target of Rs 8,750 with a stop loss at Rs 8,060.
SUDEEP SHAH
HEAD – TECHNICAL & DERIVATIVE RESEARCH, SBI SECURITIES
Where is Nifty headed?
While the past week has witnessed Nifty marking a fresh all-time high above 22,500 levels, analysis of market breadth reveals that 72% of Nifty constituents are trading above their 20-day EMA levels, indicating robust momentum. Chart patterns suggest, 22,200-22,250 will act as a strong support going forward. Till spot Nifty holds 22,200, we may witness the continuation of the current momentum up to the level of 22,750- 22,850. However, if the index slips below 22,200, profit booking up to 21,980-21,860 could be witnessed. Weekly options data coupled with cooling off in India VIX from higher levels suggests possible consolidation with a positive bias for Nifty within the 22,200-22,850 range for the upcoming week.
What should investors do?
We expect large-cap names from select banks, pharma, power, capital goods, CPSE, metal, oil & gas as well as auto to outperform. Cool-off in the Dollar Index below 103 levels, along with US 10-year bond yields stabilising closer to 4.07%, is a positive from a macro perspective. Positive trade set-up is visible in select large-cap names such as ICICI Bank, Maruti, Cipla, Sun Pharma, and L&T. On the mid-cap front, stocks like Astral, Bank of Baroda, Bank of India, PNB, HAL, Dixon, ICICI Pru, SRF, Shriram Finance could continue to witness strong buying interest.