Stocks like Reliance, SBI, Infosys, L&T, Axis Bank, PFC, Titan, National Aluminium, Natco Pharma, MCX, CDSL, BSE, and Indian Hotels are poised for short-term upside, they added.
DHARMESH SHAH
HEAD OF TECHNICALS, ICICI SECURITIES
Where is Nifty headed this week?
On expected lines, Nifty logged a resolute breakout from fi ve weeks of consolidation (24,500-23,300) that augurs well for the extension of the ongoing up-move towards 25,200. Meanwhile, the follow-through strength in Bank Nifty post two months of consolidation breakout signifi es acceleration of upward momentum that makes us believe Bank Nifty would eventually challenge lifetime highs of 54,400. FIIs have turned positive during the week as they remained buyers on three out of fi ve sessions. FIIsβ comeback would boost the sentiment going ahead. What should investors do?
The formation of higher peaks and troughs supported by signifi cant improvement in market breadth augurs well for the durability of the ongoing up-move. Any temporary breather should be utilised to accumulate quality stocks on dips as immediate support is placed at 24,000. BFSI, capital goods, infra, IT, and pharma would be in focus; while realty, and metal offer bargain buy opportunities. In large-caps, Reliance, SBI, Infosys, L&T, Axis Bank, PFC, and Titan look good for 5-6% gains. Among midcaps, Persistence, Lemontree, National Aluminium, Natco Pharma, IREDA, Midhani, Sona BLW Precision look good from 8-10% prospective. AJIT MISHRA
SVP-RESEARCH, RELIGARE BROKINGWhere is Nifty headed this week?
On technical front, Nifty has shown impressive recovery over the past three weeks, retracing more than 50% of its correction from the record high of 26,277.95 to the November 21 low of 23,263.15. The index has reclaimed all key moving averages, establishing a support base of around 24,300. A decisive move above 24,800 could further accelerate the recovery, targeting the 25,100-25,300 zone.
What should investors do?
We maintain a βbuy on dipsβ view. While IT and banking sectors continue to show sustained outperformance, selective contributions from other sectors are crucial to sustaining the momentum. Additionally, while broader indices remain buoyant, it is important to focus on fundamentally strong stocks in the mid-cap and small-cap segments, as these counters are also prone to sharp decline during the corrective phases. We have identifi ed a list of stocks from the F&O universe that may be suitable for short-term positions for both long and short trades. Stocks that are bullish on charts include APL Apollo, Bank of Baroda, Canara Bank, Grasim, JSW Steel, Jubilant Food, L&T, and Varun Beverages. Bearish on Asian Paints, Can Fin Homes, Cipla, Coal India and Oil India.
CHANDAN TAPARIA
ANALYST-DERIVATIVES, MOTILAL OSWAL FINANCIAL SERVICES
Where is Nifty headed this week?
Nifty negated the formation of lower top – lower bottom on weekly scale and witnessed a decent follow-up rally last week. The index had formed a short-term bottom near 23,300 zones which is a 50-week exponential moving average. Recently, it captured the 50% retracement of its previous declines from 26,277 to 23,263, and the base is shifting higher to reclaim the psychological 25,000 mark. It formed an inverted head & shoulder pattern on a daily scale which has bullish implications and witnessed momentum by surpassing the key juncture of 24,444 zones. However, it had a volatile Thursday, being a weekly expiry, but a meaningful decline is being bought. It formed a small-bodied candle on daily chart while a bullish candle on a weekly scale which indicate some consolidation but overall buying interest could emerge.
What should investors do?
Now Nifty needs to hold 24,444 zones to extend the recent swing towards 25,000-25,200. On the downside, key support exists at 24,250 and 24,000. Positive on Nifty IT, capital market and digital India for the short to medium term. Stocks-wise bullish setup in MCX, CDSL, BSE, Indigo, Bank Baroda, Tata Power, Axis Bank, Indian Hotel and Persistent; while weakness is seen in Asian Paints, Can Fin Homes.
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