Let us talk about that record high rally that we saw on Friday. Well, Nifty did quite some bit on Friday, had quite the run, managed to cross 22,100 but then tempered a little bit but managed to end the day on a record high nonetheless. So, is this a one-time rally we saw on the back of that budget announcement or do you expect this momentum to sustain and with that, let us also talk about Nifty Bank because while Nifty is at record high levels, Nifty Bank is far from its own record high. So, what is your outlook on both of these indices going ahead?
So, overall, if we analyse both the indices, they are looking positive. Though there is underperformance from Bank Nifty, but looking at the overall structure and the way largecap banking stocks are placed, we believe that Bank Nifty will also catch up from this underperformance and we may see another round of rally in Bank Nifty also.
Yes, we do expect that this rally can extend further. It is not a one-day rally and as we have already marked a new all-time high, overall if we analyse the structure, the short covering action was clearly there.
Nifty was comfortably holding above 21,700-21,800 call concentration area, so that covering has already taken place in today’s session also. So, we believe that this rally can extend and possibly we can see 22,300 to 22,500 is the next target where we expect the Nifty to continue this momentum in coming weeks.
So, one can remain on the long side of trade for Nifty and now one can trail their stop loss towards 21,650.
For Bank Nifty, the immediate challenging level or supply area at this moment is placed at around 46,300 on Bank Nifty spot.Once we are able to cross those levels on a closing basis, we do believe that yes, there could be another round of rally we can see in Bank Nifty also and possibly we can see levels towards 46,800 to 47,000 levels also for Bank Nifty.So, at this moment, one can hold a long position in Bank Nifty with stop loss of 45,600, that is the important level on the downside.
Let us talk about a stock that was down and out in just two trading sessions, down 36% and I am talking about Paytm. We did have some type of reassurance coming from the management where they said that they will not be working with the Paytm payments bank anymore and they see some near-term impact, but they say that in the longer term or in the medium term things should look better. So, what is your take on Paytm? Is there any coming back from this order and this diktat that the RBI has given to the company?
I think this is the second consecutive day where we have seen that stock was on a lower circuit and still investors and traders, those who are stuck in the stock, are placing their order to exit from the stock.
So, I think some more pressure we can see and looking at the overall structure now, stock is approaching its November 2022 swing low that was at around 438. So, I think this pressure can continue further and maybe we can see further lower levels towards 450, even 400 kinds of levels in the continuation of this down.
So, stock structure has turned very negative at this moment. So, I think one should avoid at this juncture to bottom fish this stock because news flow is not digested by the market at this moment and I think those who are still stuck in the stock they are willing to exit from the stock. So, I think some more supply pressure is likely to be there in the coming trading session for the stock.
What are your stock specific ideas for the next week and which are the stocks that are on your radar?
Post budget speech, we have seen that there is a clear outperformance in most of the PSU banks. So, Punjab National Bank, PNB, is looking very promising. The kind of breakout which we have witnessed on the monthly as well as on the yearly chart, that clearly shows that this stock can continue further more upside and possibly we can see our target towards 135 to 140 in the continuation of this uptrend.
Series on series, there is a long built-up kind of setup that is already there in PNB. So, we believe that PSU bank traction is likely to continue and PNB could be one outperformer stock from the F&O universe, so one can look to buy this stock with a stop loss of 120.
Another stock is Coal India. Continuity of uptrend is there. Most of the power stocks have done well and looking at the overall structure for Coal India, we believe that this stock can exhibit further more traction on the higher side and possibly we can see a target towards 433 to 435.
So, one can buy Coal India with a stop loss of 410 and the third stock is Tata Consumer. Stock has shown a good rally and after a brief consolidation of the last five-six trading sessions now again stock managed to break out of its consolidation range.
So, looking at the near-term, short-term structure we believe that Tata Consumer can continue further more upside towards 1200 kind of level. So, one can buy this stock with a stop loss of 1130.
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