F&O Talk | Nifty likely to rise significantly after 25,330, high probability of banking success: Kotak Securities’ Sahaj Agrawal

He Skilled It gained 413 points during the week to close at 25,236. It was another week where bulls remained in control of the proceedings. There was fresh buying after Nifty crossed the psychological resistance of 25,000 and there was follow-up buying in the second half of this week as well. The move was backed by strong momentum.

US and Indian markets have regained recent highs, reflecting continued optimism about a rate cut in September.

The 30 actions BSE Sensex On Friday, the New York Stock Exchange (NSE) Nifty index rose 231 points, or 0.28 per cent, to close at 82,365, while the broader NSE Nifty index gained 84 points, or 0.33 per cent, to close at 25,235. This is the third consecutive day that the Nifty index closed at a record high.

Analyst Sahaj Agrawal, Senior Vice President: Head of Derivatives research, Kotak Valuesinteracted with ET Markets regarding the Market outlook and certain specific actions of the actions. Below are the edited excerpts:

Nifty is holding above the 25,000 mark and analysts believe that it is in a position to hit new all-time highs in the near future. What are your thoughts on this?

Yesterday we closed at all-time highs. As far as I understand, there is a small barrier at 25,330, after which we can expect a significant rise. The lack of general market momentum that we are experiencing now could change and the bulls could become more aggressive. In fact, the US market is also facing a similar situation.

As the August expiry draws to a close, OI’s monthly data shows 52,000 call option writers with a strike price of 25,200 ITM and then 24,200 call option writers with a strike price of 25,300. For put option writers, the highest concentration is also at 25,200, followed by 25,100 strike prices. How to read this data for the September monthly expiry?

The maximum accumulation of call options at the moment has moved to 25,200, while for put option writers it remains at 25,000. During the first trading days of September, I would like to trade with a positive bias followed by data points or momentum triggers. And of course, as I mentioned, watch for a strong barrier at 25,330 above which the bulls could roar again.

Even in the case of the weekly series, the highest level of option selling is at 25,200 and then at 25,300. How important is the 25,200 level now, given that the index closed above that mark on Friday?

At critical resistance levels there will be increased volatility and increased attempts by bulls and bears to cross/defend the levels. I think we will be able to cross the levels, but not so easily.

Bank Nifty is under some pressure. It is consolidating, but the silver lining is that at least it is not going down anymore. A golden cross was also seen on Wednesday. Moreover, it has also produced a breakout of the descending channel. Are these indicators enough for the index’s upward movement?

There is certainly a lack of momentum in that space. There are plenty of value and momentum stocks in the market. banking The space has not been able to participate in the rally. As far as I understand, it is worth taking the risk and one should try to regain ground in the banking space with a high probability of success.

Nifty IT is also at an all-time high, unaffected by global sentiment. What do you think?

He IT Sector It caught our attention a long time ago when the whole sector was doing nothing. Now the sector is in action and keeps the overall market sentiment positive. Yes, I would be more of a trader in this case and expect the rise to continue.

Do you know of any IT stocks that can be traded or even accumulated for the medium to long term?

infy would be our preferred choice at this time.

At Reliance’s AGM, how do you see the stock after the upgrade and where it stands technically?

Reliance is in an uptrend with trend support at 2700. Since the stock is now at 3050-3070, it suggests a rather defensive collar strategy – positive bias with limited involvement in upside and downside.

Trent and BEL will be inducted into the Nifty 50 index from September 30. Do you recommend any position in these stocks?

Trent is already flying high, but BEL is higher on the charts in terms of growth.

Among some of the most popular stocks is also Paytm. It hasn’t been a great year for the company, but with the Finance Ministry’s approval for its payment services business, it seems the stock can breathe a sigh of relief. Do you have any comments on the update and any position for traders?

Honestly, I haven’t traded this stock for a long time. I keep looking at the charts, I would only buy around the 400-450 mark, with trend support located at 335 from a delivery standpoint. My experience with trading stocks so affected by news has been a bit uncomfortable, hence my conservative view.

Are there broader sectors to pay attention to?

The metal space looks interesting right now.

Are there any stocks to choose from within or outside your preferred sector?

Tata Steel: CMP: Rs 154-155 | Support: Rs 142 | Target: Rs 170/180

Browse: CMP: Rs 135 | Support: Rs 123 | Target: Rs 160/170

Jindal Steel and Energy: CMP: Rs 970 | Support: Rs 890 | Target: Rs 1150/1200

Axle bench:CMP:Rs 1180 | Support: Rs 1090 | Target: Rs 1500

Industrial Bank: CMP: Rs 1420 | Support: Rs 1340 | Target: Rs 1700/1800

(Disclaimer:The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of the Economic Times)