Nifty faces strong resistance at 18,446: Analysts

AJIT MISHRA
VP-TECHNICALS, RELIGARE BROKING

Where is Nifty headed?
Nifty has a strong base around 18,050, which also coincides with the support zone of the short-term moving average. Its sustainability would fuel gradual recovery and help the index to retest 18,500- 18,700. In case of a breakdown, 17,850 would offer cushion.

What should investors do?
Based on chart formation, Bharti Airtel, Birla Soft, Exide Ind, and Ramco Cements look promising for long trades. On the other hand, Divi’s Lab, Jindal Steel & Power, and Sun Pharma can be considered as short opportunities. Bharti Airtel has formed a strong base around the neckline area of the previous consolidation range, while Birla Soft has witnessed a sharp recovery with a noticeable surge in volumes. Exide saw a breakout from the 5-month consolidation phase.

APURVA SHETH
HEAD OF MARKET PERSPECTIVES & RESEARCH, SAMCO SECURITIES

Where is the Nifty headed?
Heavy open interest is at 18,200 strike calls and puts. Considering price action and option chain, the monthly expiry will likely be between 18,500 and 18,000.

What should investors do?
Traders with risk appetite can go for short strangles or straddle strategies. Conservative traders can build short iron condors or ironfly strategies. Investors can look at adding stocks from private banks, NBFC, engineering, hotels, and infra space where quarterly results have been good. We like Kotak Bank, Axis, Bajaj Finance, HG Infra, Elecon, Indian Hotels, and Apar Industries.

PRITESH MEHTA
SENIOR VICE PRESIDENT – RESEARCH, YES SECURITIES

Where is Nifty headed?
A fresh rally would come into play once Nifty confirms a shift in orbit as par Gann parlance above 183(00). Staying stock or sector specific is recommended.

What should investors do?
The ratio of IT index vs. Nifty is hovering around the confluence of the support zone, i.e., the 6-year mean and point of polarity zone. The reversal in ratio from hereon would result in possible outperformance of IT in the medium term. Tech Mahindra and HCL Tech are expected to stage a 10-12% rally in the next few weeks. Our customised power index is attempting to surpass Jan ’23 peak, once confirmed, it will result in renewed strength in Tata Power and Torrent Power.