The markets still look quite range bound when it comes to Nifty 50 for we managed to move above the 18,100 level but ended the week below that figure. Going ahead what is the expectation, are we looking for a breakout or a breakdown or is this range expected to continue?
I think this range is going to continue and technically the Nifty is moving in a narrow range of 18,200 to 17,800 levels. We have seen buying emerging from the lower levels and at the same time we have seen selling pressure from the higher levels of 18,150 to 18,200 levels. I am of the view that this is a lackluster, choppy kind of a moment for the market, neither the bulls nor the bears are gaining strength at this point of time. Right now, I am expecting the 18,150 to 18,250 is going to be a strong resistance that is not going to be broken easily right now, at the same time 17,850 to 17,900 is going to be the support for the market and from that support upside bounce is likely to occur from the lows over the period of time.
What is your view about the entire IT pack? A bit of a reversal is what we have seen in 2023 so far, is this going to be the trend you believe?
Yes, actually we have seen significant upside bounce in the IT pack recently especially midcap and the frontline caps. Nevertheless, I am not expecting any bigger upside momentum from here. We are likely to see some kind of a decline from the IT majors and at the lower levels they would find support.
What are your top recommendations for the coming week, some of the stock picks which are structurally showing quite a bit of strength chart wise, what would those be?
Yes, I have a stock pick that is . If you look at the larger term charts, it has been continuously moving with higher tops and bottom. The long-term charts, the chart, overall chart patterns are looking positive for the stock and I am expecting an up move further. So, from here I am expecting Rs 45- 45.50 is going to be the next upside target for the near term in the next one week. And second pick is HAL, Hindustan Aeronautics Limited. Based on charts, was continuously seeing a range bound movement and we believe that the triangle pattern which is unfolding over the last many months is expected to be broken on the upside. It has shown some signs of upside breakout by moving around Rs 2480- 2500 and I am expecting this upside momentum to continue in the near term so the next target would be around Rs 2650.
