He said, “Bank Nifty’s poor performance is preventing Nifty from moving higher; Bank Nifty has to perform well for Nifty to move higher. The bullish trend is intact and one should buy above 23500 levels and target 23,800-24,000.”
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Edited excerpts from the conversation:
For the last 4 days, Nifty has been continuously rising and hitting new record levels, but it is trading in a broad range of 23300-23500. Do you see more chances of strong moves on either side of the band in the coming week?
Nifty is stuck in a narrow range between 23300-23500, and a breakout from either side will initiate trending moves. Bank Nifty’s poor performance is holding Nifty back from moving higher; Bank Nifty needs to perform well for Nifty to move higher. The trend remains bullish, and a breakout above 23,500 should be a buy move targeting 23,800-24,000.
How do you trade Nifty Bank in a holiday-shortened week?
For Nifty Bank, one should wait for confirmation of a breakout above 50,200 points. If the index breaks above 50,200, it will open the way up to 51,000 with strong support at 49,800. However, if the index fails to cross this resistance zone, it may move sideways downwards to 49,000 points.
How does the momentum of sugar and ethanol-related stocks like Praj Industries and Shree Renuka Sugars look?
The whole movement in the sugar sector started after the announcement of increasing ethanol blending from 15% to 20%, which induced fresh momentum in the sector. The near to near term outlook is positive, and stocks like Praj and Renuka Sugar are expected to do well. Praj has broken its previous swing high of 650, which will now act as support in case of a decline. Investors can buy in a phased manner in the sugar sector due to its volatile nature.
PSU stocks have seen consistent buying. Is there any name you would like to bet on this week?
Post the election result, there has been significant stability across the PSU pack, with some stocks surpassing their previous swing highs. One stock that should be highlighted is CONCOR, which shows a strong technical chart setup with higher highs and higher lows on the daily chart. The stock has experienced volume-based buying in recent trading sessions, which clearly indicates bullish momentum. Support for the stock is placed at 1060, with potential upside targets of 1240 and 1400.
Titagarh Rail shares were the top performers this week with a return of 29%. Do you think rail stocks can still be in focus ahead of budget preparations?
The outlook for the entire railway sector appears positive, but investors should adopt a buy-on-dips approach. Titagarh has witnessed delivery-based buying this week, indicating long-term buying interest. The stock has crossed the resistance level of 1300, and a decline towards the support would present an ideal opportunity to go long.
Tell us your favorite things of this week.
Buy PPL Pharma at 157, SL-150, TGT 180/200
Rationale: The stock is on the verge of breaking out of its consolidation phase on the daily chart. The momentum indicator RSI remains above the 60 level, indicating strong momentum. The stock is trading above its short-term moving average of 20 DMA, which is placed at 150 and acts as a support in case of any decline. Once the stock crosses the 160 mark, it may see an uptrend in momentum towards the 180/200 mark.
Buy NYKAA at 170, SL-160, TGT-180/200
Rationale: The stock is showing early signs of a bottom formation on the long-term chart, evidenced by volume-based buying. It has found strong support at its 100DMA and 200DMA, confirming a bottom formation. Additionally, momentum indicator RSI is on the verge of a breakout from a falling trendline on the daily chart, which will further add to the momentum.
Buy Concor at 1135, SL-1060, TGT-1240/1360.
Rationale: The stock is trading in a strong uptrend, maintaining higher high and higher low structures on the daily chart. It has crossed its 20DMA with significant volumes, indicating a bullish momentum. Lower level support is placed at 1060, which will act as a cushion in case of any decline.
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