CHANDAN
TECHNICAL ANALYST,
Where is Nifty headed?
Nifty is holding on at a higher support base and we expect positive momentum to continue to drive the index to higher zones. Mechanical indicators are giving a bullish crossover which indicates up-move momentum could continue in the coming sessions. India VIX was down by 1.7% last week and has been comparatively cooling off from its highs. Now, Nifty has to hold above 18,000 zones for an up-move towards 18,350, then 18,500-18,600 zones. Supports are placed at 17,950 and 17,777 zones.
What should investors do?
Investors can use small declines to add good quality stocks from PSU banks, capital goods, and the consumption sectors, while traders are suggested to maintain positive to rangebound bias with position sizing. One can go with a Bull Call spread, buying 18,150 calls and selling 18,350 calls, to play the move towards 18,350-18,500 zones. Positive on ACC,
, , Vedanta, , Bajaj Finserv, Tata Steel, etc.
AJIT MISHRA
VP-RESEARCH,
BROKING
Where is Nifty headed?
Nifty has reclaimed the 18,100 zones after seven months and is gradually inching toward record high. It might take a breather around 18,350 next, but eventually progress towards the 18,700 level to mark a new record high. In case of any dip, 17,700-17,900 zone would provide the cushion. Importantly, we expect the banking index to resume the uptrend and fuel the market momentum from hereon. However, any sharp decline on the global front, especially in the US, could delay a new high, but the tone is likely to remain positive.
What should investors do?
On the index front, traders may consider creating a Bull Spread options strategy to exploit the potential move, keeping in mind the abovementioned levels.
can reach a record high of Rs 920-plus after marginal consolidation. There was a fresh breakout in Bajaj Finserv from a two-month consolidation phase, expect to test Rs 2,000 levels soon. , trading in a consolidation range for four months, is likely to see a breakout soon and make a new high around Rs 4,200. PVR has seen a steady recovery after the trendline retest, expect Rs 1,940 and then Rs 2,000 levels.
NAGARAJ SHETTI
TECHNICAL ANALYST,
SECURITIES
Where is the Nifty headed?
A reasonable positive candle was formed on the daily chart Friday, indicating an attempt to move up post-consolidation in the market. Hence, one may expect Nifty to retest and surpass the immediate hurdle of 18,150-18,200 levels in the early part of this week. On weekly chart, Nifty has formed a long bull candle at the edge of a decisive upside breakout of the crucial resistance around 18,100 levels (previous tops). The overall daily and weekly chart patterns and the Nifty testing important resistance signal chances of a decisive upside breakout by this week. The upside breakout of 18,200 is expected to pull Nifty towards the target of 18,600 in the next one week.
What should investors do?
Investors may look to create long trading positions. It is advised to go long aggressively on the decisive upside breakout of 18,200 levels for target of 18,600 and higher. The stop loss for long positions is to be kept at 17,950 levels. Stocks with positive bias include JSW Steel, TCS, Auro Pharma, SBIN,
Ind, Ambuja Cement, Bajaj Finserve, and SUN TV.
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