On the upside, immediate resistance is expected at 25,250. Actions like Coforge, Balrampur Chini, JK Lakshmi CementDivi Lab, Torrente Pharmacytitan, Ica Laboratoriesand Lal PathLabs could attract support-based buys, analysts said.
Dharmesh Shah
CHIEF TECHNICIAN, ICICI VALUES
Where is Nifty heading this week?
In the upcoming eventful week, we believe strong support for the Nifty lies at 24,800, and holding above would keep pullback options open amid oversold conditions. In the process, volatility remains high, although current geopolitical concerns are discounted along with RBI Policy and the start of the Q2 FY25 earnings season. Only a decisive close below 24,800 would lead to an extended correction towards 24,400. Meanwhile, to the upside, 25,500 would act as immediate resistance. In 2024, on five occasions the intermediate corrections were limited to 5-6% respecting the 50-day EMA and over time, such corrections were stopped in 6-7 sessions and subsequently witnessed a decent upward movement. In the current scenario, with a 5% correction behind us, Nifty is at the 50-day EMA amid oversold conditions.
What should investors do?
Sectorally, IT, metals and pharmaceuticals may fare better, while BFSI, capital goods and oil and gas offer buying opportunities at economical prices. In large caps infosys, Bank of Baroda, JSW Steel, NTPCand M&M’s look good with gains of 5-6%. In mid-cap companies Coforge, Balrampur Chini, JK Lakshmi Cement, NMDC, cotton greaves, EIH can give 8-10%.CHANDAN TAPARIA
TECHNICAL ANALYST, MOTILAL OSWAL FINANCIAL SERVICES
Where is Nifty heading this week?
Nifty has been forming lower highs and lower lows on the daily scale for the last four trading sessions and fell below its 50-day EMA with the negative crossover of the Relative Strength Index (RSI). Nifty recovered 5,000 points from the low of 21,281 made on June 4, 2024 to its recent high of 26,277 zones and a 38.20% retracement of the entire movement reaches 24,400 zones, providing significant support to maintain the recent price drop. Until the index remains below 25,450 zones, further decline in profit bookings could be seen towards 24,850 and 24,400 zones, while on the upside immediate hurdles are seen at 25,250 and 25,450 levels.
What should investors do?
Traders are advised to be light and watch the short-term price structure, while investors can take advantage of the recent decline or a further corrective move to add stocks to build in the portfolio. At the sectoral level, most sectoral indices posted gains with the formation of a bearish candle, but the technology, metals and selective pharmaceutical sectors could provide some resilience. Weakness can be seen in banking, real estate, capital goods and PSU sectors. Stocks like Alkem Lab, Balrampur Chini, Coforge, Divi’s Lab, Torrent Pharma, Titan, Ipca Labs, Naukri, Lupine and Lal PathLabs could see some support-based buys, while Ashok Leyland, AstralBandhan Bank, Bharat Forge, Concor and Tata Consumer look weak.
AJIT MISHRA
SENIOR VP OF RESEARCH, RELIGARE CORRIDOR
Where is Nifty heading this week?
Nifty suffered a sharp decline after three consecutive weeks of gains, losing 4.5%, largely due to negative global cues. Technically, Nifty’s sharp decline surpassed multiple short-term moving averages and the ascending trend line on the daily chart. Furthermore, India’s VIX has risen more than 18%, indicating increased fear among participants. Taking these factors into account, the index is likely to continue falling, with the next support at 24,750 and the main support at 24,350 (100-day EMA). In case of recovery, the 25,500-25,800 zone is likely to act as resistance.
What should investors do?
Given the prevailing scenario, participants are advised to limit long positions and consider shorting weaker sectors until the Nifty decisively recovers the 25,600 level. Investors should use this phase to gradually accumulate quality stocks on dips. Based on technical parameters, these are the stocks in the F&O universe, which can be considered for short-term positions depending on the market tone. Bullish: Divi’s Lab, Exide Industries, Indraprastha Gas, Infosys, Lal Pathlab, Polycab, Tata Steel, Tech Mahindra, Vedanta. Bearish: Aarti Industries, Bandhan Bank, Bata India, IRCTC, Indus Tower, LIC Housing, PFC, RBL Bank, REC, Tata Motors.
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