RAJESH PALVIYA
HEAD TECHNICAL DERIVATIVES, AXIS SECURITIES
Where is the Nifty headed this week?
On weekly chart, Nifty has formed a “Doji” candlestick pattern that indicates indecisiveness among market participants on the direction of the market. If Nifty crosses and sustains above the level of 22,650, it would witness buying, leading the index towards 22,800-23,000 levels. Conversely, if the index breaks below the 22,400 level, it would witness selling, taking it towards 22,200- 22,100. The weekly strength indicator RSI is about to cross over above its reference line, indicating a potential change in the trend to positive.
What should investors do?
Investors can look for stocks such as Vedanta, Hindalco, JSW Steel, City Union Bank, Canara Bank, HDFC Bank, ABB, Siemens, and Godrej Properties, as they are likely to exhibit bullish behaviour. Traders can use the moderately bullish Bull Call Spread strategy of April 10 weekly expiry. Buys one lot of 22,550 Calls at Rs 107 and simultaneously sell one lot of 22,750 Call at Rs 34. The net outflow or maximum loss will be restricted to up to Rs 3,650. If Nifty closes above 22,623 at expiry, the strategy will start making profit. The maximum gains will be restricted up to Rs 6,350.
ARPAN SHAH
ANALYST, MONARCH NETWORTH CAPITALWhere is the Nifty headed this week?
Indian markets outperformed the global markets last week, which indicates a continuation of upside in the coming week as well. Traders may witness increased volatility in the market as we are heading into the general elections. India VIX, which is trading below 12, is likely to go up in the coming days. Any dip in the market during this volatile period is a buying opportunity as we are heading towards the 22,800- 23,000 level in the coming days. Bank Nifty has also given a fresh breakout led by HDFC Bank, and is heading for fresh high of 49,200-50,000.
What should investors do?
Traders are advised to focus on large-cap stocks as they may outperform broader markets in the April Series. The IT index was an underperformer in March, but it has been closing with doji formation for the last two weeks. Traders can look to add HCL Tech and Tech Mahindra at current levels and expect a short covering rally before the results. Kotak Bank has witnessed buying interest from Rs 1,725 level and closed with a bullish candlestick. The stock is heading for the Rs 1,850-1,900 levels in coming weeks. Any dip in HDFC Bank towards Rs 1,510 is also a buying opportunity. From the FMCG pack, ITC and HUL are buying opportunities. From an investment perspective, Investors can look to accumulate Sula, Timken, HDFC Life and PVR Inox.
MEHUL KOTHARI
ANALYST, ANAND RATHI INVESTMENT SERVICES
Where is the Nifty headed this week?
Nifty is trading above the S3 Camarilla pivot, and it found support at this level in the previous trading session. Additionally, since the index is trading significantly above its 21-day and 50-day exponential moving averages (DEMA), there is a possibility of reversion towards the next support levels of 22,340 and 22,200. Nifty Bank emerged as a notable performer in the past week, gaining almost 1,300 points and closing with a substantial increase of 2.90% for the week. Looking ahead, the level of 48,636 poses an immediate resistance as it represents the previous high reached in December 2023.
What should investors do?
Traders should focus on Nifty Bank index as it seems to be a clear outperformer. Also, there are many individual stock opportunities. With silver breaking out above Rs 80,000 on MCX, metal stocks would again be under the limelight. Hindustan Zinc and Hindustan Copper are our top picks for the coming months. One can accumulate Hindustan Zinc on dips around Rs 335–325 for a target of Rs 360 and Rs 400 over 3-6 months with a stop loss below Rs 300 on a daily closing basis. Hind Copper can be accumulated at Rs 320–310 for a target of Rs 360-400 with the same time frame. The stop loss can be Rs 280.