RAJESH PALVIYA
HEAD TECHNICAL & DERIVATIVES, AXIS SECURITIES
Where is Nifty headed this week?
On weekly chart, the index has formed a bullish candle with a lower shadow indicating buying at lower levels and 18,000 acting as a good support. If Nifty crosses and sustains above 18,450, it would witness buying, taking the index towards 18,600-18,700. If it breaks below 18,200, it would witness selling, taking the index towards 18,000-17,800.
What should investors do?
We suggest a Call Ladder strategy for the November 24 expiry, which involves buying one lot of Nifty 18,400 calls at `179 and selling one lot of 18,600 calls at `84, along with one lot of 18,800 calls at `31. It’s advisable to exit the strategy to avoid unlimited losses above 18,900. One can also focus on stocks like
, ICICI Bank, Bharat Forge, JSW Steel, DLF, , , , and , which can show bullishness.
SAMEET CHAVAN
CHIEF ANALYST-TECHNICAL & DERIVATIVES, ANGEL ONE
Where is Nifty headed this week?
The price configuration looks promising because Nifty finally managed to surpass the multipletimes tested trendline resistance above 18,200–18,000 with some authority. 18,200–18,000 would now be seen as a sacrosanct support zone. Testing 18,450 and 18,600 is clearly on the cards. We will see Nifty clocking a fresh record high if momentum persists.
What should investors do?
Traders should brace themselves for an excellent stock-specific treat shortly. On Friday, Mindtree witnessed a decisive breakout from its previous swing high with volumes. We recommend buying for a target of Rs 3,970 with a strict stop loss of Rs 3,488. Hero Motocorp looks attractive. The stock stalled around its crucial support zone of Rs 2,500, followed by a modest recovery. It can be bought for a target of Rs 2,790 with a stop loss of Rs 2,600.
ABHILASH PAGARIA
HEAD – NUVAMA ALTERNATIVE & QUANTITATIVE RESEARCH
Where is Nifty headed this week?
Indian markets should have a stable start, and positive momentum should continue. Until the November expiry, the level of 18,530 in Nifty should likely act as a potential resistance area, and at the same time, the index will have strong support at 18,150. India VIX came down to 14.40, one of the lowest levels this year.
What should investors do?
In the near term, Nifty Bank is displaying strength and may relatively outperform. We are recommending long-term holders to use the current strength to lighten up some positions as we can’t rule out the possibility of Nifty facing resistance as it heads towards the previous all-time highs. At current levels and in case of any weakness, a basket of the following stocks should be bought —
, , and for a 30% return in six months.
