CHANDAN TAPARIA
DERIVATIVES ANALYST,
Where is the Nifty headed?
Nifty has been forming higher lows for the last four weeks and managed to hold near 15,850-15,888 zones. Falling volatility with rising Put Call Ratio is giving some comfort to the Bulls. Now, Nifty has to hold above 16,061, to witness an up-move towards 16,350 zones; while on the downside, support exists at 15,950 and 15,888 levels.
What should investors do?
Use this move to add good quality stocks from auto, FMCG and private banking sectors; while traders are suggested to play with bounce-back move towards 16,350 zones with buy-on-decline. One can go with Bull Call Spread buying 16,100 Call and selling 16,300 Call to play the bounce towards 16,350 zones. Positive on Maruti,
, BEL, Titan, MRF, , M&M, Nestle, Concor, Indigo, , L&T, Tata Consumer, Siemens and HUL
DHARMESH SHAH
HEAD-TECHNICALS,
Where is the Nifty headed?
The index has undergone healthy retracement as it retraced 38.2% of over 1,000 points rally seen during past 3 weeks that helped the index to cool off the daily stochastic oscillator. We expect Nifty to gradually head towards 16,600 in the coming weeks.
What should investors do?
Bouts of volatility owing to anxiety around Fed hikes amid the earning season cannot be ruled out. We believe strong support for Nifty is placed at 15,700. Auto and capital goods are expected to lead amid structural uptrend, backed by sharp corrections in crude oil prices and commodities. BFSI, consumption and pharma to witness stock specific activity. In large-caps we prefer SBI,
, Siemens, Dr. Reddy for 5-7% upside; in midcap , , Granules, , , looks good for 8-10% upside.
SRIRAM VELAYUDHAN
VICE PRESIDENT-ALTERNATIVE RESEARCH, IIFL
Where is the Nifty headed?
We are bullish in the shorter time frame and expect the index to move towards the 16,600 handle this month. While the India VIX cooled off around 4.5% last week, momentum oscillator Relative Strength Index too has given a bullish crossover. Interestingly, Nifty’s 10-day moving average is at the cusp of crossing above the 34-day exponential moving average which many a times has led to acceleration in short-term upside momentum.
What should investors do?
Traders can buy Nifty futures for a target of 16,600 with stop loss at 15,800. With auto, banks and FMCG expected to lead the rally, investors with a medium-term horizon can look to buy quality names like
, , Tata Motors, , SBI, HUL and . Alternatively, one can also evaluate buying exchange traded funds (ETFs) from these sectors.
