AJIT MISHRA
VP-RESEARCH, RELIGARE BROKING
Where is the Nifty headed this week?
Nifty is currently quoting at 17,828, well above the support zone of major moving averages. Indications favour the prevailing trend to continue, and Nifty will test the 18,100 zones soon. However, we could see some consolidation first. In case of any dip, 17,400-17,600 would be strong support. Participants should align their positions according to the trend and look for buying opportunities on dips. At the same time, we expect volatility to remain high due to Q4 earnings announcements.
What should investors do?
We reiterate our preference on banking, financials, FMCG and auto; and be selective in others. Axis Bank has formed a strong base around the long-term moving average. DLF is trading on the verge of a breakout from a consolidation range. Eicher Motors recovered swiftly after retesting the monthly support zone around 2,800. Hindustan Unilever is hovering above major moving averages. Expect the rebound to continue. ICICI Bank is inching gradually higher with a noticeable rise in volumes. Maruti is set to resume the trend in line with other auto majors. Formed a strong base of around 8,200.
NAGARAJ S SHETTI
TECHNICAL RESEARCH ANALYST, HDFC SECURITIES
Where is the Nifty heading this week?
A small positive candle formed on the daily chart with a long lower shadow, which indicates buying in intraday dips. Nifty attempts to stage an upside breakout of the crucial overhead resistance of 17,800-17,850. A sustainable move above this hurdle will likely negate the bearish chart pattern of lower tops and bottoms of the last few months and could open positive patterns like higher tops and bottoms. Nifty on the weekly chart showed an upside breakout of the down-sloping trend line at 17,600 levels last week and closed higher. The overall chart pattern continues to be positive, and the upside levels to be watched for are around 18,200-18,300 for the coming weeks. Immediate support is at 17,650. What should investors do?
The market is in a sharp uptrend, and we advise investors to continue with the trend with long positions in Nifty and Bank Nifty. One may look for aggressive longs above 17,900. Any intra-week dips down to 17,650 could be a buying opportunity. Stocks with positive bias are ICICI Bank, Kotak Bank, Bajaj Finance, SBI Cards, DLF, Oberoi Realty, Tata Steel, Tata Motors, and Bajaj Auto.
VIRAJ VYAS
TECHNICAL & DERIVATIVES ANALYST, ASHIKA STOCK BROKING
Where is the Nifty headed next week?
Daily charts indicate a change in structure, suggesting a potential break from the ongoing lower-high-lower-low pattern. The index is in the process of a recovery move, with a crucial resistance level at 17,800-18,000. If the index manages to sustain a move above this range, it could trigger a fresh leg of bullish movement. The momentum has been overbought, with nine consecutive high days, and any pullbacks towards the 17,500-17,400 levels could present better re-entry opportunities and improved risk-reward setups.
What should investors do?
India VIX is hovering near its 52-week lows, indicating a sense of complacency in the market, which may lead to a potential corrective move. The current relief rally has been fuelled by short-coverings and cash buying by FPIs.
