“Therefore, it is only on the weak side of the overall composition. If we go even with rollover data, the rollover clearly indicates that shorts have been rotated for this series,” Palviya told ET now. He added that the August Gust series fell down 1.2% with the Nifty and the bank Nifty slipped about 4%, while the FII net remained short and added a more short agreement to the September series.
The technical picture strengthens this weak setup. “Both indicators are now trading below the 200-day moving average, which is also a sign of weakness for a short-term short-term perspective,” Palvia said.
He published 24,500 as the main level of the Nifty, warning that the lower trade index could pull at 24,200 or even 24,100. For the bank Nifty, he warned that the trend would be unless he claims 54,200, with targets of loss of 54,200 and 53,400 and 53,200.
He added, “This is about another week where we are building low-low-low-low. Therefore, it shows that the bank is constantly being pressured in the Nifty,” he added.
Living events
Palvia also noted the weakness in heavyweights like Reliance, which slipped below its key support zone Post AGM, but asserted that a widespread market trend would be determined by rollover positioning and index level.
“If it continues to trade below the 1370, 1380 zones, we can additionally see profits in this counter and may also improve the down moving stock 1320, 1300 zones,” he added, adding that a new rally above 1,440 can start.
Despite the caution in the overall market, Palwiya called Britannia a shopping candidate with a target of 5,980–5,990, and suggested shorts in LIC with a loss of 830.
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