Amidst all the ups and downs seen last week, what’s your outlook for this week? What are the key levels to watch out for Nifty and Nifty Bank traders?
The directional intent controlled by bulls provides an environment conducive to long-term growth. The Nifty August series has been great for the market as it builds further on the gains of the July series. Nifty50 has rallied 17-18 percent from June lows, therefore, we are cautious on September series both from technical perspective & global event risk perspective.
The Nifty is trading in a range and forming a good base around 17,450 levels maintaining above the same suggested strength on the counter. OI data shows that on the call side, the highest was witnessed at 17,800 followed by 17,700 while on the put side it was at 17,300. The momentum indicator stochastic bounced out of the oversold zone and traded with a positive crossover on the daily time frame indicating strength in the counter.
Support for Nifty has shifted to around 17,300 level while on the upside 17,850 may act as an immediate hurdle. On the other hand, Nifty Bank has support at 38,200 level while resistance is placed at 40,000 followed by 40,800 level for next week.
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has bounced back smartly after hitting a 52-week low of Rs 10,727.20 on July 1. Is the stock still enough steam? Will it cross the Rs 20,000 mark in the coming weeks?
Bajaj Finserv has rallied more than 60% after hitting a 52-week low of Rs 10,727. Bajaj Finserv, a fintech company, has outperformed Nifty Financial services since July. As Bajaj Finserv has announced to split its existing equity shares on September 13, Bajaj Finserv shares will split in the ratio of 5:1. The company will issue a bonus share of face value of Re 1 for every 1 share of Rs 1. This means that Bajaj Finserv shareholders will get 1 bonus share for every Bajaj Finserv share held by them. Indicators such as MACD and RSI indicate momentum in stocks is likely to continue. One might look to buy at CMP and add more on dips. We expect the stock to rise 10-15 percent in the near term.
What will the chart look like for auto stocks next week?
While the benchmark index continues towards the 18,000 level, the auto index has performed very well in the last 3-4 months. We expect the ongoing rally to remain intact. Apart from being large-cap, midcap stocks are also high performers. Auto parts manufacturers are not left behind to participate in this rally. The EV theme is attracting foreign investment and quality car stocks are at their best today. Nifty Auto index looks bullish on the chart pattern and it may go up to 14,000 level in near term. The index has strong support at the 12,500 level and any decline in the index should be seen as a buying opportunity. Some stocks that may give good returns are like
, Durability, , etc.
What is driving the rally in PSU banks? Do you see them in the overbought zone right now?
PSU banks have recently started joining the rally. The finance ministry last week reviewed the performance of public sector banks against the backdrop of first quarter figures and asked them to increase lending to productive sectors of the economy. In the last month, the PSU Bank index has given a return of 3.35 percent and we expect the PSU Index may test the 3,500 level in the coming days. It has strong support around the 2,780 level as well. The momentum indicator has rebounded from the oversold zone and will provide a positive crossover on the daily time frame indicating strength in the counter. Other than
stocks like , and may provide handsome returns in the coming days.
The rally in some telecom stocks like (Maharashtra) has been spectacular this week. Do you think the momentum will last?
Tata Teleservices Ltd (TTML) which is a mid-range cellular telecommunication service provider has had a crazy performance and has soared 43.63 percent in the last week. It has a market capitalization of Rs 17,672 crore. Total shipments increased by 149.94 percent. Shares are trading higher than the 20-day and 50-day moving averages but lower than the 200-day moving averages. We recommend a cautious positive approach to stocks. Most importantly, investors should not look at equities for a short-term perspective because the outlook is necessarily longer.
Which 3-4 stocks will be on your radar for the next week?
On the monthly chart, the stock has been trading with the 21-MMA support which shows a positive trend. Also, the stock has formed a strong base around the Rs 640 level while Rs 925 will be the resistance level, crossing above the same level could indicate more upside rally. On the weekly chart, the stock has been trading in a rectangular formation and consolidating near the resistance zone indicating strength on the counter.
Moreover, the stock has moved above the “Ichimoku Cloud” with a positive cross between the conversion line and the base line, which indicates a reversal movement on the counter. On the daily chart, the price has been trading with the middle of the “Bollinger Band” which suggests that the price increase will continue in the near term. The stock looks bullish on the chart a cross above Rs 925 could show more strength on the counter for a target at Rs 990-1,040 level while on the downside, support comes at Rs 640 level.
On the weekly chart, the price action completed a strong hold above the Rs 1,480 level confirming the upside in the stock. It is trading above the 50 simple moving average, confirming support in the price action. Moreover, it also forms an inverse H&S pattern on the hourly chart. The RSI plotted on the daily and weekly timeframe is above the 50 level which reflects strong momentum in the stock.
Bollinger Bands on the daily time frame have started to expand with volume participation indicating that volatility in the fundamentals is increasing for an upward movement. Therefore, based on the above technical structure one can initiate a long position at CMP Rs 1,485. However, on the safer side, the nearby Rs 1,478-1,480 level is a better range to enter. A close and sustain above Rs 1,500 will lead towards Rs 1,550-1,560 levels in the coming days. The SL can be kept at Rs 1,458.
Since Sept 2021, the stock has been trading in the range of Rs 140-160. After that strong price action led to robust volume generating excellent returns (CMP Rs 296.60) over the 12 month period. On the monthly chart, the stock has been trading with higher highs and higher lows forming for the last 3 months indicating continued strength. On the weekly chart, the stock has been trading in a rising wedge formation and has crossed the upper formation band indicating strength on the counter. According to the above technical parameters, the stock looks bullish on the chart, one can buy the stock at CMP Rs 296, and fall to Rs 287 is a good buying opportunity to target Rs 345-400 level while on the lower side. , support comes at the Rs 250 level.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of Economic Times)