F&O Talk | 22,700 Resistance to Nifty’s 23,300 breaks: Sudip Shah of SBI Securities

The domestic market ends in a positive field after a constant sales week, driven by re -recurrent in Q3FY25 GDP and recovery in consumption. Metals, capital goods and energy areas, China’s excitement measures, and the optimism around the low prices of crude oil have gone beyond fuel.

In addition, the decline in the Dollar Lar Index boosted the spirit of investors towards emerging markets, while the uncertainty of Trump’s economic policies is the U.S. The equity markets were down.

On Friday, the benchmark BSE Sensex lost 7.51 points or 0.01% at 74,336, while the comprehensive Nifty 50 index closed at 22,552.50, which is 7.80 points or 0.03%.

Analyst Sudeep Shah, Deputy Vice President and Head of Technology and Derivatives Research, SBI Securities interacted with ET markets on the Nifty and Bank Nifty for next week. The quotes edited from its chat are as follows:

What is the understanding of your markets right now?

Given the latest pace, the market appears ready to extend its pullback rally in the next few trading sessions. However, it would be crucial to monitor the key resistance level and overall spirit to the gauge whether the re -recovery is the strength to sustain the strength.

What is a comprehensive view on the Nifty with key layers? Do you think the rally is likely to sustain or this is just a relief rally?

In line with our expectations, the benchmark index Nifty not only temporarily stopped in its downtrend but also achieved impressive recovery, witnessing an intense pullback rally of about 600 points from its recent 21,965 low. Finally, it closes the week above the 22,500 mark, posting about 2%of the overall benefit. The Nifty Midcap and Nifty Small Cap 100 increased by 2.66 and 5.47%respectively, with strong pullback rallies in the wider market.

But is this strong pullback rally running right? One of the major factors in the US de Dollar Ler Index is a significant weakness, which has been upset over 3.4% over the week – marks its most improvement in recent times. Due to this sharp decline, the Dollar Lur Index has pushed both its short and long -term moving average.

Next, Brent crude oil ends on a negative note for the seventh week. This continuous reduction in oil prices is a welcome development for oil-impaired countries like India, as it helps reduce inflation pressure, facilitates trade loss and strengthens economic fundamentals. Such a scenario is a weak Dollar Lare for emerging markets like India and as crude reduction generally improves the liquidity situation and has proved to be a favorable tailwind for facilitating currency pressure.

Technically, the index is likely to continue its pullback rally in the next couple trading sessions. Talking about crucial levels, a zone of 22,670-22,700 will act as an immediate barrier to the index of index as it is a confluence of the 20-day EMA and 38.2% of its latest travel (23,807-21,965). If the index sustains above the level of 22,700, then we can witness the expansion of the pullback rally up to 23,000 levels, followed by 23,300 levels in the short term. Upon loss, the zone of 22,300-22,250 provides cushion in case of immediate reduction.

What is your vote on Bank Nifty?

Banking benchmark index, Bank Nifty, underperforms frontline indices last week. During the week, he has supported his previous swing near the lower and then a small pullback rally was seen. Finally, it ended the week near the 48,500 level with a small benefit of 0.32%.

On a weekly chart, the index has created a doji candlestick pattern, which shows ambiguity in market participants. In addition, velocity indicators and oscillators reflect the same spirit, indicating a lack of strong directional bias at this stage.

Going forward, the 20-day EMA zone of 48,800-48,900 will act as an immediate barrier to the index. If the index sustains above the level of 48,9, then we can witness the expansion of the pullback rally up to 49,700 levels, followed by a short period of time, 1,500. On loss, a zone of 47,900-47,800 will act as a crucial support for the index as the previous swing loos has been placed in the area.

Banking Heavyweights HDFC Bank, ICICI Bank and Kotak Bank What is your vote?

In the last few trading sessions, all three banking stocks – HDFC Bank, ICICI Bank and Kotak Bank are moving in the side range. This consolidation phase has caused their dynamic average flattening, which shows the loss of direction. In addition, the key velocity indicators and C selators indicate that this range-bound movement is likely to continue in the near term. On both sides, the critical breakout will be required to confirm the next directional move.

Index vs Shares? Which side is better for trade right now?

At the current stage, the stock-specific trade offers better opportunities than a comprehensive index. Some fields have recently been out of consolidation, while others are back from the lower level, creating a favorable environment for selecting stock picking. This regional strength provides traders enough opportunities to earn individual stock movements rather than just relying on index -based trade.

How does PSU basket look like? And there is no top elections?

The PSU basket shows strong velocity, with the BSE PSU index rising by about 7% last week. On the daily chart, the index is on the edge of the Adam and Adam double bottom pattern, indicating the probability of an ongoing sidewalk. Given this setup, PSU stocks are likely to outperform in a short term.

From a technical point of view, the Stand Bhag is the Mazed Ock, BDL, GRSE and NMDC as promising candidates, with strong price action and favorable chart structures.

Metal baskets seem to be doing well. What are your votes and shares of choice?

The Nifty Metal Index has given a consolidation breakout on the Daily Chart and is currently trading above its short and long -term moving average. The 20, 50 and 100-day EMA has launched a high edge, while the 200-day EMA is falling significantly, which indicates a change in trend. In addition, velocity indicators and C selators indicate a strong boom in the index. Therefore, we believe that the index is likely to test the level of 9,050, followed by 9,200 in the short term.

Technically, Hindalco, Tata Steel, JSL and Jindal Steel are moving strongly.

Trent is close to his support. Is any position recommended?

Trent’s stock has supported 50% of its previous rally (1155-8345) level near the Fibonacci retracement level and is a witness to a small pullback rally. However, the main trend of the stock is still bearish because it is cited below its short and long -term dynamic average.

Moving forward, if the stock sustains above the level of Rs 5,350, it will pay Rs. It is likely to extend up to 5,900 levels. On the loss, if the stock slip below the level of Rs 4,850, it is likely to resume it.

Is there a field and stocks that look well right now?

From a technical point of view, Nifty Metal, Nifty India Defense, Nifty PSE, Nifty CPS and Nifty Commodity Indicators expect to maintain their upper speed in the near term. The ongoing strength in these areas indicates that buying continuous interest and potential breakout opportunities.

In these fields, stocks like Hindalco, Tata Steel, JSL, Jindal Steel, Mazed Ock K, BDL, GRSE and NMDC are showing strong technical setups and are in good shape for outperforms in the short term. Traders can find dips to enter or follow the velocity for the possibility of more side -of -the -art.

(Connection: The recommendations, suggestions, opinions and opinions provided by experts have their own. This does not represent opinions of economic time)