SAMEET CHAVAN, HEAD RESEARCH TECHNICAL & DERIVATIVES, ANGEL ONE
Where is Nifty headed this week?
The small-bodied candle formations suggest that the bulls may be reaching their limit and could be waiting for an external trigger to continue their momentum. As the Nifty ventures into uncharted territory, it becomes challenging to identify the intermediate resistance. However, with the recent developments, 23,650-23,700 seem to pose a significant challenge, and a decisive closure could potentially trigger the next leg of the index’s rally. On the lower end, strong support is around 23,400, which has proven its reliability in the previous week, fol lowed by the crucial support of 23,200-23,100. From here, if we do not witness any aberrations from global peers, we may see consolidation for some more time.
What should investors do?
We like Granules for the coming week. With Friday’s strong upsurge, the stock has broken out from the congestion zone. In addition, the volume activity has been decent for the last 2-3 sessions. We recommend buying for a target of ₹545. Traders can participate by following strict stop loss at ₹468. PVR Inox has been underperforming for months, but in the last 10-odd sessions, it seems to have found its mojo back. We recommend buying for a target of ₹1,600. The stop loss to be placed at ₹1,360.
NAGARAJ S SHETTI, TECHNICAL RESEARCH ANALYST, HDFC SECURITIES
Where is the Nifty heading this week?
A reasonable negative candle was formed on the daily chart with a minor lower shadow. Technically, this pattern indicates the formation of a bearish engulfing pattern. But having moved in a range recently, the significant reversal pattern is ruled out. The market has failed to decline sharply after forming such doji or bearish engulfing patterns in the recent past. Nifty, on the weekly chart formed another small range negative candle with minor upper and lower shadows. This weekly pattern may signal the formation of a bearish spinning top-type candle pattern. But follow-through weakness in the subsequent week could confirm this bearish pattern.
What should an investor do?
The short-term trend of Nifty continues to be range-bound with a weak bias. However, a move below the immediate support of 23,300-23,250 levels could indicate the beginning of a shortterm downward correction in the market. One may be cautious of longs at new highs. A slide below the supports could be an opportunity to exit longs. Stocks with positive bias include SBI, IDFC First Bank, Infosys, HCLTech, M&M Financial, MAX Financial, and Tata Steel and SAIL. Stocks with negative bias include Marico, Dabur, REC, PFC, Maruti, M&M, BPCL and IOC.
RUCHIT JAIN, LEAD RESEARCH ANALYST, 5PAISA.COM
Where is Nifty headed this week?
Markets continued a gradual up-move, and there are no reversal signs yet as the stock-specific buying interest remains robust. FIIs had recently turned buyers in the cash segment and have formed long positions in index futures too. Sector rotation is keeping the overall trend intact and hence, any dips could witness buying interest in the expiry week. The immediate support for Nifty is placed around 23,300, followed by positional support at a 20-day exponential moving average of around 23,100. Any dips, if seen, would probably lead to a higher bottom formation. On the higher side, the index could gradually rally towards the 23,900-24,000 zone, which is the retracement of the recent correction.
What should investors do?
We to trade with a positive bias and focus on stocks/sectors that are witnessing good price volume action. Private sector banks look good for positional trade, and thus, one should look for buying opportunities in stocks such as HDFC Bank and CUB. Railways and chemicals look good as stocks have seen good price volume action. RAILTEL can be bought on dips in the range of ₹465-460 with a stop loss below ₹440 for a target of ₹540. GHCL looks good at its current price with stop loss below ₹530 for target ₹600 and ₹620.