Nifty at 24,500, over the beginning of the week these levels seemed difficult to reach but now see where we have closed for the week. So, first question to you is do you think this rally that we have seen is sustainable going before the budget, do you think we could see these kind of moves leading all the way to the budget and second I also want to get your view on what Nifty IT is doing because it is at a four-month high this week, so what are your levels that you are watching out for both Nifty as well as Nifty IT.
Rajesh Palviya: Yes, we believe that this momentum can extend further towards the budget, the way short covering action has been there in most of the call writers for 24,500, 24,550, even 24,600 strike so that is clearly showing us that this rally can extend further and possibly we may see a target towards 24,800 to 25,000 also ahead of budget because whatever minor dip which we have witnessed in this week that was again the fresh buying action has been there in the market and only we have seen a 200 point kind of dip in the market and then again now we are back to all-time high trajectory for the Nifty. So, the way broader market is participating, sectorial rotation is happening, now the IT is on the front seat for this rally, so the way market is doing the sector rotation that is clearly giving us confidence that ahead of budget maybe we can see further higher level towards 25,000 level also.
One should remain on the long side of trade, 24,300 should be your stop loss at this moment. Though Bank Nifty is not participating in this rally, there is some pressure from some of the largecap banks, but still the way Bank Nifty has also managed to close above 52,000 mark, we believe that if it holds 52,000 mark, then possible buying interest would be there in banking stocks also going forward and then there would be contribution from banking space also in coming days and possible target we can see for Bank Nifty towards 52,800 to 53,000. So, at this moment the Bank Nifty may remain show some consolidation and possible stop loss to remain long would be around 51,800 to hold long position in Bank Nifty. Now moving to the Nifty IT, very strong momentum in Nifty IT, especially in today’s session post TCS number, the way most of the largecap as well as the midcap stocks have moved up in Nifty IT pack, we believe that here there is a further more upside we can see.
Looking at the levels on Nifty IT, now Nifty IT managed to give breakout above its previous swing high of Feb 2024, so looking at the structure now we believe that till now Nifty IT holds above 38,500 mark there is a high possibility that here we can see furthermore upside towards 39,500 to 39,700.
The way TCS, Infosys, Wipro managed to give breakout on their near-term consolidation range, so we believe that largecap IT stocks can also contribute furthermore, so TCS would be our choice, then Infosys is the second choice for to buy from largecap IT and from midcap IT Coforge is looking very promising, we have discussed earlier also for Coforge, here we are bullish and we believe that Coforge can also show further more upside, 6,200 to 6,300 would be the next target for Coforge, so one can look to buy this stock with stop loss of 5,800 and another stock that we like from midcap IT that is Birlasoft.
Again, stock now managing to give breakout of last four week consolidation, so Birlasoft can be a stock where one can focus for upside target of 765 to 770, your stop loss should be placed at around 710.
What we saw in the broader market, that closed with marginal gains only. Midcap and smallcap, they both closed less than half a percent this whole week and lot of buzz was around SEBI could possibly take a tighter action on option trading, some amendments in F&O stocks, margin could come, a lot of buzz doing rounds, but then at the same time we have seen some standout gainers also from broader markets only. How should one approach stock like, very specific stocks like GE Shipping or RVNL or Oil India? One should hold on? Of course, all of them are not in futures and options, but then stocks like at least Oil India, how should one approach now?
Rajesh Palviya: Very strong momentum is going on in Oil India. Though the whole sector is also showing good buying interest from oil and gas sector. So, Oil India is one of the stocks where we are seeing again all-time high trajectory. So, looking at the structure, I think till stock is holding above 570-560 zone on a closing basis, one should remain on the long side of trade.
Possibly, rally can extend further and we hold our bullish view for this stock. Oil India can continue furthermore upside. Positionally, we are projecting target towards 700 also for Oil India. So, buy on dips is the strategy, though stock has already moved up, so if you get any opportunity in decline, you can buy and accumulate, your stop loss should be placed at around 560 kind of zone to buy and accumulate Oil India.
Tell us the stocks you have picked and how to navigate those stocks over the course of the next trading week.
Rajesh Palviya: I believe a firm rally can extend in pharma space and we believe the way most of the pharma stocks have shown buying interest in last couple of days, that clearly giving a sign that here we can see rally.
Dr Reddy’s is a buy. The way stock has closed this week, very strong bullish candle on weekly chart, long build-up is there on derivative data, we are projecting target towards 6850 to 6900 for Dr Reddy’s, keep your stop loss to buy this stock around 6660.
The second stock that we like is from FMCG pack, that is Britannia. Most of the FMCG stocks have also done well in last couple of weeks.
The way Britannia managed to give break out of its previous swing high, here is a potential, very strong weekly bullish candle, here is a potential to continue furthermore upside, 5940 would be the next target for the stock, one can buy this stock with stop loss of 5720.