CHANDAN
DERIVATIVES ANALYST,
Where is the Nifty headed?
The Nifty is forming bullish candle on weekly scale with its higher-high higherlow sequence and supports are gradually shifting higher. India VIX was up by around 13% last week and has been falling for the last seven consecutive sessions, suggesting some comforts for the bulls. Now Nifty has to hold above 16,161 zones for a move towards 16,500 and 16,666 zones, downside support is intact at 15,888 and 15,735 zones. July has a positive track record, but short positions with call writing at higher strike is indicating some pause could be seen in positive momentum at higher levels.
What should investors do?
Investors can use this move to add good quality stocks from auto, FMCG and private banking sectors while traders are suggested to play the bounce-back move with proper position sizing. One can go with a Bull Call Spread buying 16,250 Call and selling 16,500 Call to play the bounce towards 16,500 zones. We have stock-specific positive stance in
, , Larsen & Toubro, , M&M Finance, , , , etc
PRITESH MEHTA
LEAD TECHNICAL ANALYST – INSTITUTIONAL EQUITIES, YES SECURITIES
Where is the Nifty headed?
Our customised Nifty Top 10 index has staged a reversal off 2-year mean, bouncing off confluence of support – suggesting leadership in index biggies. Furthermore, over 45% of stocks from the broader markets universe (i.e. Nifty 500) are showing bullish set-ups.
What should investors do?
In the last few sessions, the Nifty Financials Services index has started to outperform Nifty. M&M Financial has confirmed a bullish triangle breakout. In the process, it also moved above the zone of `190 — which had been acting as a strong hurdle for the previous two months.
SUDEEP SHAH
HEAD – TECHNICAL AND DERIVATIVES RESEARCH DESK,
SECURITIES
Where is the Nifty headed?
In the week gone by, Nifty has managed to close above 16,200 levels which is the 50-Day exponential moving average for the first time in 52 trading sessions. The pullback rally was not only quantitative but also qualitative in nature, as over 70% of stocks from the Nifty 500 have rebounded above their 20-day simple moving average levels. This broad-based rally indicates improvement in market sentiments.
What should investors do?
Investors should look to buy the dips until 15,950 levels are not breached and should accumulate quality stocks. Traders should focus on stocks and sectors that are relatively outperforming the Nifty. Our preferred large-cap picks are L&T, ICICI Bank,
, and HDFC Bank; on the mid-cap front, stocks like ABFRL, Foods and witnessed strong buying interest at lower levels. We are suggesting a Nifty Bull Call spread by buying 16,250 Calls and selling 16,450 Calls with a premium cost of 72 points and a potential reward of 128 points. Keep a stop loss of 35 points of the premium.
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