Nifty May poll vault above 23,110 life-high
Nifty is expected to cross its current all-time high of 23,110 early this week driven by optimism around the exit polls that is hinting at the BJP-led NDAreturning to power with a strong majority. Analysts expect short covering if Nifty holds above the 21,821 zone. Bajaj Auto, Britannia, Coal India, HDFCBank, Union Bank, Fortis, Indus Towers, Dixon and BHEL are some of the stocks recommended by the analysts for short-term trading
AJIT MISHRA SVP-RESEARCH, RELIGARE BROKINGWhere is headed this week?
Nifty faced pressure after two weeks of gains, losing nearly 2% amid mixed signals. Currently, Nifty is trading at the lower band of a rising channel around the 22,400 level, and a decisive break here could lead to a further decline, potentially retesting the 21,800-22,000 support zone. In case of a recovery, the 22,900- 23,400 zone would be challenging to surpass.
What should investors do?
With the in focus, we expect continued . The sector outlook is mixed, with fresh declines in the IT and FMCG sectors reducing hopes for support. Although broader indices remain near their record highs, has deteriorated, indicating selective participation. In this scenario, we recommend closely monitoring and waiting for more clarity. For short-term trades, traders can consider bullish bets in , , , Coromandel, Gujarat Gas, , Torrent Pharma. Bearish on Apollo Tyres, Bajaj Finance, Berger Paints, PVR Inox, Titan, and UPL.
PRITESH MEHTA EXECUTIVE VICE PRESIDENT, YES SECURITIES
Where is Nifty headed this week?
With election buzz around, India VIX is reasonably high. This will lead to gapping actions and whipsaw moves. The broader trading range is seen between 23,000 (multiple peaks around the same) and 21,800 (three-digit Gann number) for the coming week. A break beyond this range and follow-through action is imperative for trend determination.
What should investors do?
Relative strength was seen in broader indices and BankNifty despite last week’s retracement in the benchmark index. For BankNifty, a move above 49,300 would result in a double top buy and momentum towards the 50,500 zone. The ratio of Midcaps vs Nifty has staged a bullish turtle break, implying possible outperformance of midcaps in the near term. As per relative strength studies and broader positive structure, we expect a rally in , Fortis, Indus Towers and Dixon of 10-15% in the next few weeks.
CHANDAN TAPARIA ANALYST, MOTILAL OSWAL FINANCIAL SERVICES
Where is Nifty headed this week?
The major trend of the market remains positive till it holds the formation of higher-lows on monthly scale. Technically, Nifty formed a High Wave Doji pattern on the monthly scale just before an important event. Such a price pattern clearly indicates a tug-of-war between the Bulls and the Bears, but at the same time, declines are being bought smartly even after the absence of follow up activities at higher zones. Overall, till Nifty holds above 21,821 zones, we are expecting the bullish trend to remain intact with immediate support near 22,222 and 22,000 for an upside move towards a lifetime high of 23,110 zones.
What should investors do?
BankNifty formed an inside bar on a monthly scale and has been moving in a rising channel for the last 18 weeks by connecting swing lows of 44,429, 45,828 and 46,983 marks. On a daily scale, the index has been consolidating in a wider range of 48,250-49,500 but holding well above its 50-DEMA. Price observation of the last couple of weeks suggests a major shift of support near 47,777 zones. While a decisive hold above 49,250 zones could commence the next leg of the rally towards 50,000-50,550 zones. Sector-wise, bullish setups are seen in CPSE, realty, metal, power and energy-related sectors. Stockwise, positive setups seen in BHEL, Ashok Leyland, Tata Power, Coal India, BEL, ICICI Bank, Dixon, HDFC Bank, Bharat Forge, and SBI.
Source: Stocks-Markets-Economic Times
