Nifty: Nifty’s drop below 24,000 could trigger correction: Rupak De, LKP Securities

In the short term, the index might see a recovery toward 24,500, while a drop below 24,000 could trigger a correction in the market, says Rupak De, Senior Technical Analyst, LKP Securities.

Edited excerpts from a chat:

Nifty failed to sustain gains during the week but the pace of selling seems to have slowed down. What are the key levels to watch out for during the week?
Nifty continues to move downward; however, the magnitude of the fall has lessened somewhat. The 24,000 level is likely to remain strong support for the index. As long as it stays above 24,000, Nifty bulls may have a chance to fight back. However, a fall below 24,000 could weaken the market. The RSI indicator remains in a positive crossover, suggesting that momentum is likely to stay strong in the short term. In the short term, the index might see a recovery toward 24,500, while a drop below 24,000 could trigger a correction in the market.The impact of US election results was felt on IT stocks with the IT index rallying 4% during the week. Do you see some consolidation going ahead?
IT stocks have been performing well recently, partly due to the US election. Stocks in the sector have seen a strong recovery from recent lows, as investors anticipate benefits from lower corporate taxes following Donald Trump’s election as the 47th US president. Several stocks in this space have given short-term breakouts, and the current positive sentiment could drive further short-term gains as upward price momentum continues.
A lot of investors are considering whether they should buy the dip in Trent following the disappointment seen in Q2 results. Do you see more pain ahead in the stock in the next few days?
Following a steep correction due to weak quarterly results, the stock has reached an important reversal point at 6,245, where the 61.8% Fibonacci retracement level of the previous rally lies. If the stock holds above 6,245, it may experience a strong short-term recovery. However, a drop below 6,245 could lead to further correction.
ITI Ltd shares topped Nifty 500 chart for this week with 33% return. Is it time to book profits?
After a staggering rally, the stock has approached its previous swing high, which may act as resistance. The Rs 300-320 zone is a key resistance area; failure to move beyond this level could attract selling pressure. On the downside, support is positioned at Rs 273, and a break below this level could weaken the stock further.

Give us your top ideas for the week ahead.

Sell Tata Elxsi at Rs 6,900. Target price: Rs 6,700. Stop loss: Rs 7,000

The stock has given a consolidation breakdown on the daily chart, suggesting a rise in optimism. In addition, the RSI on the daily timeframe is in a bearish crossover and falling. The price has been sustaining below the critical moving average. On the lower end, it might fall down towards 6700; while a resistance is placed at 7000.

Buy Infosys at Rs 1827. Target price Rs 1920. Stop loss: Rs 1790

The stock has moved up higher after a consolidation breakout on the hourly timeframe. The sentiment looks positive from here which might take the stock towards 1920 in the short term. On the lower end, support is placed at 1790.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Secular Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – seculartimes.com. The content will be deleted within 24 hours.

Leave a Comment