23,560, followed by 23,890 and an uptrend towards the immediate support at 23,000. Analysts say Tata Motors,
In the short term trade, it deals in UltraTech Cement, Sun Pharma, McDowell, UBL, ITC, Marico, HUL, Tata Consumer and Lupin.
Shilpa Rout, Vice President, PRABHUDAS LILLADHER Derivatives Research
Where will the Nifty head this week?
Last week, the market experienced intense volatility, with a massive correction causing participants to experience unprecedented declines. However, ending the week on a high has restored hope among bulls. The options chain reflects strong immediate support at the 23,000 zone, indicating very aggressive put writing.
Meanwhile, 24,000 call writers hold the maximum position. This suggests a wider trading range this week, suggesting a bullish setup. Though FII longs remain at the lower end, the gradual daily improvement is also encouraging for bulls, suggesting that a rally on short covering is very likely. What should investors do?
Investors should watch the market’s reaction to the formation of the government. If the 23,000-22,850 zone holds, a rise to 23,600 and above is expected. Pharma and FMCG sectors are showing breakouts with stocks such as beer especially showing good momentum. Focus on McDowell, UBL, ITC, Marico, Godrej Consumer in FMCG sector and Granules, Metropolis and Lupin in pharma sector, on the long side we see immediate tight stop losses at Friday’s closing levels. JATIN GEDIA Technical Research Analyst, SHAREKHANWhere is Nifty headed this week?
In terms of derivatives data, there has been a significant increase in open interest at 23,000 PE followed by 23,200 PE, suggesting strong support. Hence, any minor pullback towards the support zone of 23,160-23,140 should be used as a buying opportunity. The current rally may continue up to 23,82. Considering the technical setup, derivatives data points and FII positioning, we expect a rally of around 2.2%-3% this week.
What should investors do?
Nifty FMCG index maintained its 200-day moving average. Pharma Index broke out after three months of consolidation. Also, trend reversal occurred in the underperforming IT sector. Buy Sun Pharma at 1,507 with a stop loss at 1,460 and a target of 1,564 -1,583. Buy UltraTech Cement at 10,460 with a stop loss at 10,100 and a target of 11,000 – 11,300. Buy Tata Motors at 970 with a stop loss at 940 and a target of 1,010 -1,035.
Sakkittanand Uttekar, Vice President, Securities Research, Tradebulls
Where will the Nifty head this week?
The long wicks on the weekly candlestick price formation are a good indication of demand-led support-based buying. The resolution of event uncertainty was indicated by the sharp drop in volatility. Options data indicates a significant upward shift in the trading range with immediate support near 23,000 and confidence at 22,500 and 24,000 strikes. Trend support looks firm near 22,210 and immediate momentum-based support at 22,860. Only a breakdown below this level would significantly skew the current bullish trend. Nifty is expected to maintain its upward trajectory towards 23,560 and thereafter reach 23,890.
What should investors do?
Most of the blue chip large caps in IT and FMCG are showing new signs of strength that could be bought into on the dip including HUL, Tata Consumer Products, Page Industries, Bata India, Infosys, LTI Mindtree, Coforge etc. We also like select auto and power stocks that are entrenched in a long term bullish trend and offer good opportunities for portfolio additions at this juncture as well i.e. Tata Motors, TVS Motors, Exide Industries.
