MEHUL KOTHARI
AVP-TECHNICAL RESEARCH, ANAND RATHI INVESTMENT SERVICES
Where is the Nifty headed this week?
The Nifty seems poised for further upside towards the 17,500-17,700 level. However, this zone would be a tough nut to crack since we have a gap area near 17,500, and the upper end of the falling channel is near the 17,700 mark. The markets won’t have a unidirectional move in the first half of 2023. Thus, traders are advised to book their longs near this zone. Regarding support, 17,000-16,800 seems to be a strong zone. Similar to Nifty, the road ahead for Bank Nifty might not be that easy since it has a gap area and falling channel resistance at higher levels of 41,000-41,500, and above that, too, there is a strong supply zone. On the downside, immediate support is at 40,000 and then 39,500.
What should investors do?
The major indices might get stuck after some more upside, but we might witness a sharp recovery in the broader markets. We expect stock-specific action in Oracle Financial Services, Page Industries, Bata India, Pidilite, and Canara Bank for the first half of April 2023.
ARPAN SHAH
SENIOR RESEARCH ANALYST, MONARCH NETWORTH CAPITAL
Where is the Nifty headed this week?
The Nifty, consolidating in the 16,800-17,200 zone for the last 15 days, has finally given a technical breakout on the daily chart and reversal formation on the weekly chart. On the derivative front FPI index future long is still at a historic low level of 11%. We expect strong upside momentum in the April series based on both factors. Nifty can reach up to the 17,700- 18,000 level in the April series, while the stop level on the downside is 16,800. Bank Nifty, which has made higher bottom formation, can lead on the upside momentum and reach up to 42,000-43,000 levels. What should investors do?
From the banking sector, ICICI Bank has given a breakout on the weekly chart, which can head towards `920-960 in the coming weeks. Reliance has given strong reversal formation on the weekly chart, and it can head for `2,500- 2,600 in the coming days. The Nifty IT index is bouncing back from its support level, and stocks like Infosys and TCS can be added at current levels. Auto stocks have fallen sharply from their recent highs, and we can expect a short-covering move in these stocks. M&M is a top pick from the sector; it can head to `1,250. From the mid-cap space, investors can add HomeFirst, RHI Magnesita, Wonderla, and Cyient on dips.
ABHILASH PAGARIA
HEAD- NUVAMA ALTERNATIVE & QUANTITATIVE RESEARCH
Where is the Nifty headed this week?
The current texture of the markets is buying on dips for long-term investors and selling on a rally for traders. Until strong participation from FPI comes back in the cash segment, we don’t see the market crossing the 18,000 mark. Currently, FPIs are bullish on China, Taiwan, and Korea, while India is underweight due to a lack of valuation comfort.
What should investors do?
The preceding week’s rally was led by FPI shortcovering, and the near-term resistance for Nifty is 17,580, and around 17,650, one can look to set a fresh short with a 1% stop loss. LTI Mindtree looks like a 7-8% trade from a fundamental and probable Nifty 50 inclusion perspective. The probable MSCI Entrant – Hindustan Aeronautics, can gain 5-6%. Our long-short quant momentum basket for April has longs – Godrej Consumer, L&T, JSW Steel, and Indian Hotels while shorts are Vedanta, Voltas, Lupin, and Godrej Properties. Long-term investors can buy the midcap Mahindra CIE as a value pick for 50% gains in the next two years.
