JATIN GEDIA
TECHNICAL RESEARCH ANALYST, SHAREKHAN
Where is Nifty headed?
Nifty has reached the zone of 20,200-20,300, where multiple resistance in the form of the weekly upper Bollinger band (20,279) and the 138.2% Fibonacci retracement level (20,286) of the fall from 19,992 – 19,223 are placed, which can attract some profit booking. In case of a dip, 19,900-19,850 shall act as a crucial support zone and on the upside, 20,200-20,300 shall be an immediate hurdle from a short-term perspective. A decisive close above 20,300 can lead to an extension of the current up-move till 20,530-20,730, an equality target and a Fibonacci extension target, respectively, as per the Elliott wave principle.
What should investors do?
The high-flying midand small-cap index closed in the red, and both the indices are due for some consolidation. We can expect stock-specific action during the week. Stocks like Tata Steel, Grasim and Tech Mahindra look positive from a shortterm perspective, while we can expect weakness in Asian Paints, Hindustan Unilever and BPCL to continue.
APURVA SHETH
HEAD OF MARKET PERSPECTIVES & RESEARCH, SAMCO SECS
Where is Nifty headed?
Nifty has broken out of its previous highs and the psychological mark 20,000. The index has been moving comfortably in an upward-sloping channel since the start of this month. We believe that the upward momentum in the index will continue only if it manages to break out above 20,200 decisively. Else, it should trade in a range of 20,000 to 20,200, given that it will be a truncated week.
What should investors do?
Nifty has crossed the all-time highs, but all sectors are not trading at their all-time highs. Nifty IT index is still more than 15% away from its all-time highs. Bank Nifty is trading close to an all-time high, but the price to book multiple is still cheap at 2.84x. We believe stocks from these sectors, like HDFC Bank, Kotak Bank, Axis Bank, TCS and HCL Tech, offer good upside from current levels. Traders can opt for a Bull Call spread in Bank Nifty by buying a 46,200 Call and selling a 47,000 Call in the monthly expiry. Maximum profit in this strategy will be Rs 7,579, and maximum loss will be Rs 4,421.
MEHUL KOTHARI
AVP – TECHNICAL RESEARCH, ANAND RATHI SHARES & STOCK BROKERS
Where is Nifty headed?
After consolidation in the range of 20,000- 19,200, the index has finally confirmed a breakout with a target of around 20,600. Now 20,400 might act as an immediate hurdle for the index since that is a placement of the rising trend line. This trend can be a temporary resistance. Above the same, there can be an extended move towards 20,600 or more. On the downside, 19,900 now might be a decisive support for the short term. Bank Nifty, once the 46,400 mark is taken out, will see a fresh breakout along with the negation of the bearish Wolfe Wave pattern. This can result in a fresh rally towards 47,000 or higher levels in the bank index. On the downside, support is at 45,500 – 45,200 levels.
What should investors do?
Traders are advised to remain highly stock-specific. We maintain our bullish stance in the PSU banks. Union Bank can be a fresh buy candidate with a holding period of three to six months. We like stocks like Alkem Labs and Tata Consumer from the F&O space.
