Analysts recommend stocks like Reliance, HCLTech, Maruti, Larsen & Toubro, Bharti Airtel, Bajaj Finserv, Tata Motors, Bank of Baroda, Ramco Cements, PVR, and Idea Forge for trading.
SUDEEP SHAH
HEAD – TECHNICAL AND DERIVATIVE RESEARCH, SBI SECURITIES
Where is the Nifty headed this week?
The index on weekly chart has formed a long bullish candle after forming a hammer the previous week, indicating the overall trend is positive. However, one should not lose sight of the volatility in global markets coupled with the deteriorating macroeconomic indicators, such as the Dollar Index sustaining above 106.4 and Brent crude surging above $91. Nifty’s crucial support zone of 19,550-19,600 could act as an important buying zone. While resistance on the upside is at 19,830-19,850. With a decisive move above 19,850, the index can revisit 20,000-20,100. Based on option chain data, Nifty is expected to trade between 19,550 and 20,000.
What should investors do?
Select stocks from the CPSE, capital goods, power, realty, consumption, and auto may outperform going ahead with positive trade set-ups in select large-cap names such as Maruti, L&T, Bharti Airtel, Bajaj Finserv and Tata Motors. Among the mid-caps, stocks like Chola Fin, Tata Consumer, United Spirits, HDFC AMC and CDSL could continue to witness strong buying interest.
SAMEET CHAVAN
CHIEF ANALYST-TECHNICAL & DERIVATIVES, ANGEL ONE
Where is the Nifty headed?
Bulls need to surpass a critical level of 61.8% retracement, coinciding with a key bearish gap around 19,880, convincingly, or else a lower-top might be formed on daily chart, potentially leading to near-term weakness. While there was willingness to buy on dips during the week, caution is advised due to the geopolitical concerns, and aggressive overnight long bets should be avoided. Traders should keep an eye on specific levels to assess the trend. Key support levels for the week are 19,600 and 19,480, while formidable barriers are at 19,880 and 20,000.
What should investors do?
On the long side, we like Ramco Cements. The ideal buying range would be Rs 980-960 for a target of Rs 1,090-1,130 with a slightly medium-term view. The stop loss can be placed at Rs 918. Traders can look to short Canara Bank for a trading target of Rs 352 with a strict stop loss at Rs 375.
ARPAN SHAH
SENIOR RESEARCH ANALYST, MONARCH NETWORTH CAPITAL
Where is the Nifty headed?
Nifty made an all-time high near the 20,200 level and corrected 900 points. The index is likely to trade volatile due to heightened geopolitical tension. It will likely trade volatile within the 19,300-20,000 range. If Nifty breaks above 20,000, expect upside momentum towards 20,500-20,700. Bank Nifty underperformed Nifty last week and will continue this underperformance until it breaks above 44,800. A breakout above 44,800 will trigger a sharp, short-covering rally in the index.
What should investors do?
Nifty IT index has given a throwback towards the breakout level of 31,400 level, and the current dip is a buying opportunity. Investors can accumulate ITBEES in the 33-34 zone and stocks like HCL Tech in Rs 1,200-1,250 zone. The Realty index has given a fresh breakout above its previous all-time high, and any dip in stocks like Oberoi Realty and Macrotech Developers is a buying opportunity. Bank of Baroda has closed with a negative formation on weekly chart, and it can face selling pressure from a higher level. Bajaj Finance has given a fresh bullish breakout, and Reliance has given a bullish reversal on weekly chart. From the mid-cap segment, stocks like PVR, Idea Forge, and Rainbow Children’s Medicare can be added at the current level.