Tech View: Nifty looks strong to move up to 24,780 and 24,965
Analysts expect Nifty to continue its upward trend towards 24,780 and 24,965. Strong performance predicted for stocks such as ITC, HUL, and Reliance. Opportunities seen in oil & gas sector and IT stocks like HCLTech. Investors advised to monitor support levels and consider profit-taking.
Most technical charts show no signs of and divergence or reversal, leading to expect the ’s gradual to extend to 24,780, followed by 24,965 in the coming weeks. Analysts predict strong performance from such as , , , , , , , , , , , , , Zee, , Entero Healthcare, and Naukri.PRITESH MEHTA, ANALYST, YES SECURITIES
Where is Nifty headed?
The Nifty index has surged, propelling Nifty to new heights. IT is currently outshining both BankNifty and Financial indices. However, the extremely high disparity between Nifty’s price and its average, coupled with the looming budget, suggests an imminent time-corrective phase. In scenarios where the support base is rising, and our customised breadth is improving, any retracement is likely to be brief. Thus, seizing breakout opportunities can yield substantial rewards. Revised support for Nifty is seen at around 24,200.
What should investors do?
The ratio of Nifty Oil & Gas vs Nifty is attempting to break above the February peak. Should this be confirmed, it will signal a continuation of momentum in oil & gas stocks, with ONGC and Gail expected to stand out for a potential rally of 10-12%. Nifty IT index surged 5% in Friday’s session and recorded a new 2024 high. Our ratio set-up of customised biggie Nifty IT index vs customised Nifty Midcap IT index shows a potential shift towards large-cap IT names. HCLTech is likely to be a major outperformer among the big boys.
SACCHITANAND UTTEKAR, ANALYST, TRADEBULLS SECURITIES
Where is the Nifty headed?
Nifty continues its rally, forming a series of narrow-ranged bodies as it maintains closing above its 5-day EMA support. On the daily scale, its average directional index (ADX) indicator has been trending well above 25 level, which is a good sign of retention of trend strength. Therefore, the 5-day EMA support (24,320) is the immediate level to gauge any loss in the ongoing momentum; and the 20-day EMA level (23,996), is a crucial point for determining trend change in case of corrective action. With no signs of any price and indicator divergence or reversal, we expect this gradual up-move to stretch towards 24,780, followed by 24,965 in the coming weeks.
What should investors do?
Participants may opt for taking some part of their profits after the rally from the election day lows, especially from stocks that have had extended rallies. Top bullish picks include Reliance, SBI, HDFC Life, Crompton Greaves, Vedanta, Indraprastha Gas, BPCL, Dalmia Bharat, and Naukri.
ARPAN SHAH, ANALYST, MONARCH NETWORTH CAPITAL
Where is the Nifty headed this week?
Traders can expect volatility at 24,000-25,000 in benchmark Nifty. Bank Nifty is trading in the range of 51,800-52,800, and a breakout from this zone will provide a trending move in that direction.
What should investors do?
The Nifty IT index has given a fresh breakout, and any dip in heavyweights TCS and HCL Tech is a buying opportunity. Defensive stocks like ITC and HUL have also given fresh breakouts, and they can be added even at current levels. Auto stocks are showing signs of profit booking at higher levels, and stocks like M&M and Bajaj Auto are selling on the rise. In banking, HDFC Bank has corrected sharply from its recent high, and it’s a buy at the current level. RBL Bank is a short sell idea. Investors are advised to avoid fresh entry into PSU defence and PSU railway stocks as they may witness profit booking at higher levels. From the midcap segment, investors can look to accumulate Zee, Gujarat Industries Power, Entero Healthcare and NLC India.
The Nifty index has surged, propelling Nifty to new heights. IT is currently outshining both BankNifty and Financial indices. However, the extremely high disparity between Nifty’s price and its average, coupled with the looming budget, suggests an imminent time-corrective phase. In scenarios where the support base is rising, and our customised breadth is improving, any retracement is likely to be brief. Thus, seizing breakout opportunities can yield substantial rewards. Revised support for Nifty is seen at around 24,200.
What should investors do?
The ratio of Nifty Oil & Gas vs Nifty is attempting to break above the February peak. Should this be confirmed, it will signal a continuation of momentum in oil & gas stocks, with ONGC and Gail expected to stand out for a potential rally of 10-12%. Nifty IT index surged 5% in Friday’s session and recorded a new 2024 high. Our ratio set-up of customised biggie Nifty IT index vs customised Nifty Midcap IT index shows a potential shift towards large-cap IT names. HCLTech is likely to be a major outperformer among the big boys.
SACCHITANAND UTTEKAR, ANALYST, TRADEBULLS SECURITIES
Where is the Nifty headed?
Nifty continues its rally, forming a series of narrow-ranged bodies as it maintains closing above its 5-day EMA support. On the daily scale, its average directional index (ADX) indicator has been trending well above 25 level, which is a good sign of retention of trend strength. Therefore, the 5-day EMA support (24,320) is the immediate level to gauge any loss in the ongoing momentum; and the 20-day EMA level (23,996), is a crucial point for determining trend change in case of corrective action. With no signs of any price and indicator divergence or reversal, we expect this gradual up-move to stretch towards 24,780, followed by 24,965 in the coming weeks.
What should investors do?
Participants may opt for taking some part of their profits after the rally from the election day lows, especially from stocks that have had extended rallies. Top bullish picks include Reliance, SBI, HDFC Life, Crompton Greaves, Vedanta, Indraprastha Gas, BPCL, Dalmia Bharat, and Naukri.
ARPAN SHAH, ANALYST, MONARCH NETWORTH CAPITAL
Where is the Nifty headed this week?
Traders can expect volatility at 24,000-25,000 in benchmark Nifty. Bank Nifty is trading in the range of 51,800-52,800, and a breakout from this zone will provide a trending move in that direction.
What should investors do?
The Nifty IT index has given a fresh breakout, and any dip in heavyweights TCS and HCL Tech is a buying opportunity. Defensive stocks like ITC and HUL have also given fresh breakouts, and they can be added even at current levels. Auto stocks are showing signs of profit booking at higher levels, and stocks like M&M and Bajaj Auto are selling on the rise. In banking, HDFC Bank has corrected sharply from its recent high, and it’s a buy at the current level. RBL Bank is a short sell idea. Investors are advised to avoid fresh entry into PSU defence and PSU railway stocks as they may witness profit booking at higher levels. From the midcap segment, investors can look to accumulate Zee, Gujarat Industries Power, Entero Healthcare and NLC India.
Source: Stocks-Markets-Economic Times
