In the last trading session, the Nifty failed to capture the sign of 25,000. Our expectations were because the week began on a very positive note with a lot of conviction, but we couldn’t maintain those levels, at least in Friday’s session. Indicators for the beginning of next week and next semester, what is your view of strategy?
Rajesh Palviya: Given the way structure and profit-booking has happened, especially in today’s session, we are again below 25,000 levels. The market was successful in crossing 25,000, but despite the Nifty crossing that level, the main Call Lt writing activity was not covered. Call Ltgs trusted 25,000 and 25,100 strike, which is why we again saw the Nifty below 25,000.
Now, as we enter the end week of the August Gust series, 25,000-25,200 are likely to act as a large supply zone. On loss, if we are able to sustain above 24,800, some consolidation can occur at the current level. Therefore, the Nifty can remain in the range of 24,800-25,000 for a few more days. Can trigger a short covering action after a breakout above 25,000. But for the nearest period, we expect range-bound activity until it ends.
Upon loss, the key support field is 24,800, which is both with a 20-day and 100-day moving average. This layer needs to be viewed very closely next week.
For Bank Nifty, we are now trading below 100-day moving average. We have already broken the important support zones of the 20- and 50-day moving average, and in today’s session, we too have slipped below the 100-day moving average. The derivative data also shows a short build-up in the bank Nifty. Structurally, the bank Nifty looks weak. Unless we cross over 55,500, next week, more weakness is possible, with a negative level of 54,800 and 54,700. Therefore, compared to the Nifty, the bank Nifty looks a bit weak, but for the Nifty, 24,800 is the main level of viewing.
Living events
I want your view of Auto toe and Auto toe on the ancillary space. From May 2025, the auto sector has given its biggest weekly benefit. There is a lot of positivity here-the expected GST rate on two-wheelers will accelerate the spirit, the festive season is strong, inventory issues can be easier with discounts, and support global uncertainty exports. The prices of raw materials have also remained stable. Especially in OS toe and Auto toe affiliations, are there any stocks on your radar?
Rajesh Palviya: Yes, we have seen a very strong rally in most auto stocks. The Auto Toe Index itself was around 5% a week. Large-cap auto names of both-wheelers and four-wheelers have performed well.
From two-wheeler space, Hero MotoCorp and Bajaj Auto toe look very promising. Both stocks gave a breakout after a long consolidation on daily as well as weekly charts. Bajaj Auto Toe looks strong at the current levels, while 8,450 stop losses, with a side-way target of 8,900-9,000 next week. For Hero MotoCorp, a breakout on the weekly chart indicates that the next target is 5,500, with 4,800–4,750 stop loss.
In the four-wheeler space, Maruti looks very promising as it offers a breakout on a long-term chart. The stock is likely to move forward, and any small reduction should be used as an opportunity to buy. Mahindra and Mahindra and Ashok Leyland are also showing good traction. Ashok Leyland is close to its highest highway, and Mahindra and Mahindra are also around the record level. Overall, most auto stocks are showing strength on both near -term and long -term charts. We believe that this area may continue to increase the benefits next week, making it attractive for velocity plays.
We would also like your business ideas for next week.
Rajesh Palviya: I have two by-side ideas.
The first pharma space – is from Cipla. After three to four months of consolidation, the stock has a breakout on a weekly chart and has strength over a week. We expect more Ward Vedic Velocity next week. Anyone can buy Cipla with a target of 1,650 and a stop loss of 1,560.
Another idea is Auto – Maruti. As mentioned earlier, a clear contracting triangle has given a breakout on both monthly and weekly charts, with a triangle breakout. Given this composition, we believe that Maruti can extend its benefits. The short cover in this counter has already begun, and in front of the finish we can see the other foot of the rally. Our estimated target is 14,800–15,000, with a stop loss at 14,170. Buy and accumulation will be a strategy here.
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