FIIs added a net length of 210k contracts in index futures in August against 62k long contracts in July. Given that the Nifty ended the August series with a gain of 3.1%, what is the outlook for the September series?
The September series started on a positive note as the index hit an all-time high on improved optimism around Indian equities. On the daily timeframe, the index has given a swing high breakout, indicating a rise in market sentiment. Strength is likely to continue as long as the index remains above 25,000. However, a drop below 25,000 could trigger a significant correction. On the upside, current optimism may propel the index towards 25,500-26,000 in the short term.
In the previous series, short-covering was seen in HDFC Bank while long build-up trend was seen in ICICI Bank, Axis Bank and Kotak Bank. On the other hand, short build-up was seen in SBI. So going forward, do you think long private banks and short PSUs are good bets?
Among private companies and PSUs in the banking sector, the former has attracted significant interest from buyers. After weeks of weak performance, it seems private banks are poised to take the driver’s seat, backed by better risk-reward ratios.
Defensives like Pharma and IT gained traction and outperformed Nifty Bank for the week. How will you trade the banking index next week?
Amid recent volatility in the past three months, there has been strong buying interest in sectors such as IT and pharma. In fact, Nifty IT stocks have been offsetting the weakness caused by banking stocks during this period. The strength in IT and Pharma indices is likely to continue in the short term as both the indices are showing strong patterns.
Stocks related to sugar and ethanol were in heavy demand in Friday’s session. Do you see signs of sustaining the rally in the week like Triveni Engineering and Globus Spirits?
The sugar sector, which has performed well recently, is likely to experience a period of consolidation before the next phase of the rally. While the broader trend remains upward, a short-term consolidation may occur. Therefore, it is worth considering taking some profit at current levels while holding on to the rest.
Give us your top trading ideas for the week
Buy DLF for Rs 845 | TGT: Rs 860/880 | SL: Rs 828
The stock has risen following the formation of a hammer pattern on the daily chart. Additionally, it has made a higher bottom, indicating increased optimism. On the lower timeframe, the RSI has entered a bullish crossover. In the short term, the stock rose to Rs. May move towards 860-880 range with support at 828.
Buy TCS at Rs 4,520-4,560 | TGT: Rs 4,700/4,780 | SL: Rs 4,440
TCS, a large-cap stock in the IT sector, has shown a bullish outlook over multiple timeframes. On the daily chart, after the breakout, the stock is consolidating higher and recently closed at its resistance level, indicating strong market interest. It is sustaining above its short-term 14-day EMA, highlighting strength in momentum. Additionally, the RSI is showing a bullish crossover, further supporting the positive sentiment. Given these factors, consider buying TCS in the range of 4,520-4,560 with a stop loss at 4,440 and a target of 4,700/4,780.
Buy LTIM at Rs 6,100-6,150 | TGT: Rs 6,500 | SL: Rs 5,850
After correcting from its highs, the stock stabilized at the 78% Fibonacci level and recently broke out of the cup and handle pattern, indicating a possible move towards the 6,500 level. The RSI has shown a bullish crossover, indicating strong momentum. This breakout suggests further upside, and any pullback that retests resistance should be viewed as a buying opportunity. With a target of 6,500, traders can consider entering the stock with a stop loss at 5,850 to effectively manage the risk.
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