MEHUL KOTHARI
AVP – TECHNICAL RESEARCH, ANAND RATHI INVESTMENT SERVICES
Where is the Nifty headed this week?
The Nifty supported a falling trend line extension near 17,300. After that, we witnessed a rally towards 17,600. For the time being, any fall towards 17,300 or lower levels can be used as buying opportunity. On the upside, 17,800 might be the initial hurdle, but 18,200 would be the trend decider after that. Only a move above that would confirm a bottom at the recent low.
What should investors do?
Traders are advised to keep booking their longs near the resistance levels and grab the opportunity to buy at the decisive support levels. On the stock front, Oberoi Realty confirmed a breakout from the falling trend line. During the process, the stock managed to break out from the flat cloud of the Ichimoku system. Thus, traders are advised to buy the stock in the range of Rs 895 – 885 with a stop loss of Rs 825 on a closing basis for the potential upside target of Rs 987.5 followed by Rs 1,020 levels in the coming 1-3 months. Also, we are bullish on Hinduja Global Solutions since it has confirmed a range breakout above Rs 1,330 with huge volumes. Buy the stock on dips near Rs 1,340 with a stop loss of Rs 1,300 and a target of Rs 1,420 in the coming weeks.
CHANDAN TAPARIA
DERIVATIVES ANALYST, MOTILAL OSWAL FINANCIAL SERVICES
Where is the Nifty headed this week?
Nifty has formed a bullish candle on a daily scale and came out of its consolidative move of the last few sessions with buying in banking stocks. It formed a bullish candle on the weekly chart with a longer lower shadow, indicating buying interest at support zones. Now, it has to hold above 17,535 zones for an up-move towards 17,777 and 17,850, whereas supports are placed at 17,350- 17,200. India’s VIX moved down by 6.09% from 12.97 to 12.18. Volatility has been cooling off from the last seven sessions and paved the way for bulls at support zones.
What should investors do?
Bank Nifty has formed a bullish candle on daily and weekly scales. Now it has to hold above 41,000 zones for an up-move towards budget 2023 day’s high of 41,750-42,000 zones; while on the downside, support exists at 40,750 and then 40,500 zones. The sectorwise bottom-out formation is seen in banking, financial, power, and capital goods stocks. Stockwise positive set-ups have formed in SBI, Canara Bank, PFC, ITC, REC, Gail, ICICI Bank, HDFC Bank, and L&T.
ABHILASH PAGARIA
HEAD OF NUVAMA ALTERNATIVE & QUANTITATIVE RESEARCH
Where is the Nifty headed this week?
We believe breaking 17,200 for Nifty looks unlikely; and on the upside, 18,100 is a near-term cap until FPIs start participating in the cash segment. Friday’s rally was driven by FPIs’ short covering worth $450 million in the index and long addition in stock futures by $330 million, but cash-led buying is still missing.
What should investors do?
Metals are ripe for a rebound, with Tata Steel and SAIL being our long bets, with a target of 8% and a stop loss of 3.5%. The MSCI May 23 probable inclusion stocks Hindustan Aeronautics, Power Finance, and Cummins have more steam left and can continue to rise. Within financials, HDFC is our top pick from a merger arbitrage and directional perspective. With MSCI inclusion behind us, CG Power can correct 7-8% from current levels. As per our quant model, Nifty IT Index and Nifty Auto Index will consolidate in March.
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