First of all, I would like to understand on the technical front, tell us now we are approaching September series and if you see fairly a good series in August what we saw, 4% of gain Nifty and then consecutive 11 days of win for Nifty especially. How to approach September month now because what we have seen is for September month if you see the seasonality data 6 out of 10 times September month has given negative return. But it has been a good month for IT space. What do you have to say on this?
Rajesh Palviya: So, looking at the rollover data, it is on the positive side, 77.50% rollover for the August series, which is higher than the last three-month and six-month average. But on the Bank Nifty, rollover data is on the lower side. But looking at the Nifty structure, we believe that this is the 11th consecutive day where we are seeing positive flows, that clearly shows that there is a sustained buying action has been taking place in the market and market has confidence to move further higher. So, looking at the technical structure, we believe that this momentum can extend further. The way broader market is participating in this up move, largecap space is also showing good strength and sectorial rotation is also happening in this up move. So, that clearly giving us confidence that possible rally can extend to 25,400 to 25,500 kind of zone in the continuation of this up move.
At this juncture, 25,000 is having major put-based concentration. So, I think one should trail their stop loss towards 25,000, 25,100 to hold long position and possible rally can extend to 24,400 to 24,500.
For this September series, we expect the range for September series for Nifty is 24,800 on the downside and on the higher side 25,600, this is going to be the possible range for Nifty. For Bank Nifty, the immediate supply zone which is placed is around 51,500 which is very important level to cross on the higher side.
If Bank Nifty at all crosses 51,500, then possibly we may see a short covering action in Bank Nifty and then rally can extend to 52,000 also. Rollover data is also showing some bit of stock specific rollover action in the banking space is giving us some sign that there could be short covering action in coming week for Bank Nifty is lined up and I think we may see a further higher level. So, for Bank Nifty also, we have bullish view, 51,000 is your stop loss to hold long position. On the sector’s front, the rollover action is clearly showing on the pharma, metal, oil and gas. These all sectors are showing good traction in terms of rollover activity. So, we believe that support buying action may continue from pharma, auto, metal, oil and gas and FMCG, these all space can continue furthermore bullishness in the September series.
Do tell us now what to expect from FIIs participation. Now, DIIs have lent a resilience, they have lent a good support up till now. But now, FIIs have also turned positive. If you look at the data, FIIs login index future at the start of the September series, that looks very promising, nearly 70%. What do you have to say on this? Which sectors do you think money is moving?
Rajesh Palviya: So clearly now, FIIs have turned bullish and we are seeing positive data since last couple of days for the FIIs and I think this sustained buying action if it continues, so I think we may see furthermore higher level for the market. I think the flow is coming to the pharma as well as in the IT sector, the way these both sectors have moved up in last couple of days and clearly, sustained buying action has taken place in pharma as well as in the IT space.
So, I think we may see good traction in these both sectors and I think as we discussed earlier also for largecap IT as well as for the midcap IT I think here we can see furthermore upward momentum. So, from largecap IT, I think TCS and Infosys could be looked at for near-term to short-term trade perspective. These two stocks are looking promising. And from midcap IT, we believe that LTTS can be one stock where we can see a good traction. And another stock that we like is Birlasoft.
These two stocks are looking bullish from the midcap IT space. Even from the pharma space, a lot many stocks are now inching further higher. Lupin is our preferred choice from the pharma space and we believe that we can see furthermore upside momentum in Lupin, so one can look this stock also from the pharma space and possible rally can extend to 2350, 2400 kind of level for Lupin.
And another stock from pharma space is Sun Pharma, that stock is also looking promising. So, we are projecting target towards 1950 for Sun Pharma, so one can look to buy and accumulate this stock also for short-term trading perspective.
Tell us now, what would be your specific recommendation, though you spoke about many of the stocks from IT as well as pharma, any specific trades that you would be eyeing for this whole week for our viewers?
Rajesh Palviya: So, first stock is from the pharma space that is Ajanta Pharma, midcap pharma space and the stock managed to give breakout of pole and flag formation on a daily chart and the way stock has given a breakout with the volume action, we believe that here we could see further more run up towards 3360, so one can buy Ajanta Pharma with stop loss of 3185. Another stock is from agrochemical space that is UPL. There was a long underperformance in the stock prices, but now the way stock has formed a base and if we analyse on the monthly weekly chart, stock managed to give break out and now stock is sustaining above all its near-term, short-term moving average. We believe that UPL may extend its gain. We are projecting target towards 620 with stop loss of 592.
And the third stock that is from the banking space and the largecap private bank that is ICICI Bank is looking promising. The way stock has moved up in the last couple of weeks and now stock is comfortably holding above 1200 mark, we believe that this is the third consecutive week where stock is forming higher high-low formation that clearly shows sustained buying action has taken place in this stock.
So, we believe that ICICI may extend its gain and possibly stock may attempt to again move back to the all-time high trajectory. We are projecting target towards 1270 for ICICI Bank with stop loss of 1205.