Expert take: Nifty may even touch the 9,300 level
Last week the Nifty failed to surpass the crucial 9000-mark and closed in the negative for the first time in five weeks. Only some indication or feelers from the outcome of the state elections will fuel the rally and take it to 9000-plus breaking the current resistance levels of 8820-8850. If the Nifty is able to surpass the resistance, it could go up to 9300. In case it remains around the current 8690 level or sees more correction, it may be the final chance to buy ahead of the inevitable rally.
PUNEET KINRA, AVP: TECHNICAL RESEARCH ANALYST, BONANZA PORTFOLIO
Where are we?
Nifty opened the week at 8943.7 and after making high at 8992.5, it made low at 8860.1 and closed in red below 8900 with 0.5% loss, after showing strength for five consecutive weeks. On Friday, Bharti Infratel and Hindalco were major gainers. Apollo Hospital and Jain Irrigation were major losers.
What's in Store?
GDP data has been better than expectations. Maximum open interest is at 9000 calls and 8800 puts. On Technical charts, 9000 is very strong resistance and 8850-8800 is important support for Nifty. It may take decisive directional move near or after the state elections outcome.So traders should be cautious. If Nifty manages to close above 9000, then a rally up to 9200-9300 may be seen.On the other hand, if it closes below 8800, then selling pressure till 8600-8500 may also be seen.
What Could Investors Do?
Investors can keep a protective stop loss at 8800 levels to book partial profit.Aditya Birla Nuvo may be bought for a target of `1,550 in next few days.Keep a stop loss at Rs 1,440.
SWAPNEEL V MANTRI, TECHNICAL ANALYST INSTITUTIONS, SUSHIL FINANCE
Nifty faced headwinds near the resistance level of 8950 and traded cautiously amidst bouts of profit booking, finally closing the week at 8897.
What is in Store?
Expect Nifty to trade range-bound going into UP elections results over the weekend. Levels wise, retracement to support zone of 8820-8850 cannot be ruled out. On the upside, 8920-8950 remains the resistance zone. Any positive feelers from UP results may propel Nifty above 8950 towards the higher levels of 9100.
What could Investors do?
Bharti Infratel (CMP: Rs 307) has formed positive RSI divergence on daily charts and offers a good buying opportunity at Rs 304-305 levels with a stop loss at Rs 292 for a target of Rs 320-335 on the upside.Further, Investors can accumulate select fast-moving consumer goods counters like HUL and Colgate on dips from long-term point of view for upside target of Rs 920 and Rs 972, respectively. On profit booking front, Indiabulls Housing Finance and BPCL are looking weak on charts and may witness profit booking.
AK PRABHAKAR, HEAD OF RESEARCH, IDBI CAPITAL MARKETS & SECURITIES
Nifty has crossed 8968 which is its 2016 high. If 9119 is crossed in the coming week, then we could be heading towards 10500-12000 by the end of the year. If Nifty remains below 8690, then some correction could happen which would be the last chance to buy, otherwise this rally could sustain with state election results or Fed rate hike being the only reasons for any correction.GST rollout in July can be a major positive trigger for markets.
Nilkamal, Syngene, Mahindra CIE, HCL Tech, Reliance, Coromandel, Mindtree, TATA Elxsi, Trident, Indo Count, Nava Bharat Ventures are Castrol are few of our picks. The result season has come to an end with no major negative surprises.Many anticipated demonetisation impact on corporate results which hasn't happened and has turned out to be a major surprise. The shift from unorganised to the organised sector was visible with a few companies posting good results. Buy and hold value stocks which have growth potential.
PUNEET KINRA, AVP: TECHNICAL RESEARCH ANALYST, BONANZA PORTFOLIO
Where are we?
Nifty opened the week at 8943.7 and after making high at 8992.5, it made low at 8860.1 and closed in red below 8900 with 0.5% loss, after showing strength for five consecutive weeks. On Friday, Bharti Infratel and Hindalco were major gainers. Apollo Hospital and Jain Irrigation were major losers.
What's in Store?
GDP data has been better than expectations. Maximum open interest is at 9000 calls and 8800 puts. On Technical charts, 9000 is very strong resistance and 8850-8800 is important support for Nifty. It may take decisive directional move near or after the state elections outcome.So traders should be cautious. If Nifty manages to close above 9000, then a rally up to 9200-9300 may be seen.On the other hand, if it closes below 8800, then selling pressure till 8600-8500 may also be seen.
What Could Investors Do?
Investors can keep a protective stop loss at 8800 levels to book partial profit.Aditya Birla Nuvo may be bought for a target of `1,550 in next few days.Keep a stop loss at Rs 1,440.
SWAPNEEL V MANTRI, TECHNICAL ANALYST INSTITUTIONS, SUSHIL FINANCE
Nifty faced headwinds near the resistance level of 8950 and traded cautiously amidst bouts of profit booking, finally closing the week at 8897.
What is in Store?
Expect Nifty to trade range-bound going into UP elections results over the weekend. Levels wise, retracement to support zone of 8820-8850 cannot be ruled out. On the upside, 8920-8950 remains the resistance zone. Any positive feelers from UP results may propel Nifty above 8950 towards the higher levels of 9100.
What could Investors do?
Bharti Infratel (CMP: Rs 307) has formed positive RSI divergence on daily charts and offers a good buying opportunity at Rs 304-305 levels with a stop loss at Rs 292 for a target of Rs 320-335 on the upside.Further, Investors can accumulate select fast-moving consumer goods counters like HUL and Colgate on dips from long-term point of view for upside target of Rs 920 and Rs 972, respectively. On profit booking front, Indiabulls Housing Finance and BPCL are looking weak on charts and may witness profit booking.
AK PRABHAKAR, HEAD OF RESEARCH, IDBI CAPITAL MARKETS & SECURITIES
Nifty has crossed 8968 which is its 2016 high. If 9119 is crossed in the coming week, then we could be heading towards 10500-12000 by the end of the year. If Nifty remains below 8690, then some correction could happen which would be the last chance to buy, otherwise this rally could sustain with state election results or Fed rate hike being the only reasons for any correction.GST rollout in July can be a major positive trigger for markets.
Nilkamal, Syngene, Mahindra CIE, HCL Tech, Reliance, Coromandel, Mindtree, TATA Elxsi, Trident, Indo Count, Nava Bharat Ventures are Castrol are few of our picks. The result season has come to an end with no major negative surprises.Many anticipated demonetisation impact on corporate results which hasn't happened and has turned out to be a major surprise. The shift from unorganised to the organised sector was visible with a few companies posting good results. Buy and hold value stocks which have growth potential.
