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Amid all the ups and downs seen last week, what is your outlook for this week? What are key levels to watch out for Nifty and Nifty Bank traders?
The directional intent controlled by bulls provides a conducive environment for longer-term growth. Nifty August series has been great for the market as it builds further on the July series gains. The Nifty50 has already run up 17-18 per cent from June lows, hence, we are cautious on the September series both from a technical perspective & global event risk perspective.
Nifty is trading in a range and formed a good base around 17,450 level sustains above the same suggested strength in the counter. OI data shows that on the call side, the highest was witnessed at 17,800 followed by 17,700 while on the put side it was at 17,300 level. The momentum indicator stochastic bounced from the oversold zone and traded with a positive crossover on a daily time frame which suggests strength in the counter.
The support for Nifty has shifted to around 17,300 levels while on the upside 17,850 may act as an immediate hurdle. On the other hand, Nifty Bank has support at 38,200 levels while resistance is placed at 40,000 followed by 40,800 levels for next week.
has been bouncing back smartly after hitting a 52-week low at Rs 10,727.20 on July 1. Does the stock have enough steam left? Will it cross the Rs 20,000 mark in the next few weeks?
Bajaj Finserv has rallied more than 60% after hitting a 52-week low at Rs 10,727. Bajaj Finserv, a fintech company, has outperformed the Nifty Financial services since July. As Bajaj Finserv had announced to split its existing equity shares on September 13, Bajaj Finserv shares would split in a ratio of 5:1. The company will issue a bonus share of the face value of Re 1 for every 1 share of Rs 1. It means that Bajaj Finserv shareholders will get 1 bonus share for each Bajaj Finserv share held by them. Indicators like MACD and RSI indicating the momentum in the stock is likely to continue. One may look to buy at CMP and add more on dips. We expect the stock to inch 10-15 percent in the near term.
What do the charts look like for auto stocks next week?
While the benchmark indices keep inching towards the 18,000 mark, auto index has performed exceptionally well in the last 3-4 months. We expect the ongoing rally to be intact. Apart from largecap, midcap stocks are also outperforming. Auto parts manufacturers are not left behind to participate in this rally. EV themes are attracting foreign investments and quality auto stocks are in top gear these days. Nifty Auto index is looking bullish on chart pattern and it may go up to 14,000 levels in near term. The index has strong support at 12,500 levels and any dip in the index should be seen as a buying opportunity. Some of the stocks that may deliver decent returns are like , , , Endurance, , etc.
What’s driving the rally in PSU banks? Do you see them in the overbought zone now?
PSU banks recently started to join the rally. The finance ministry last week reviewed the performance of public sector banks in the backdrop of the first quarter numbers and asked them to step up lending to productive sectors of the economy. In the last month, the PSU Bank index has delivered 3.35 percent returns and we expect the PSU Index might test 3,500 levels in the coming days. It has strong support around the 2,780 level as well. The momentum indicators have bounced from the oversold zone and are about to give positive crossover on a daily time frame which suggests strength in the counter. Apart from
, stocks like , and may deliver decent returns in coming days.
The rally in some of the telecom stocks like (Maharashtra) has been spectacular this week. Do you think the momentum will sustain?
Tata Teleservices Ltd (TTML) which is a midcap cellular telecommunication services provider had a crazy ride and has soared 43.63 percent in the last week. It has a market capitalization of Rs 17,672 crore. Delivery volume increased by 149.94 percent. The stock is trading higher than 20-day and 50-day moving averages but lower than 200-day moving averages. We recommend a cautious positive approach on the stock. Most importantly, investors should not be looking at equities for a short-term perspective as the outlook should necessarily be much longer.
Which are the 3-4 stocks that would be on your radar for next week?
Adani Ports:
On the monthly charts, the stock has been trading with the support of 21-MMA which suggests a positive bias. Additionally, the stock has formed a strong base around Rs 640 levels while Rs 925 will be a resistance level, crossing above the same can show more upside rally. On the weekly chart, the stock has been trading in a rectangle formation and consolidating near the resistance zone which points out strength in the counter.
Moreover, the stock has moved above “Ichimoku Cloud” with a positive crossover between the conversion line and the baseline, which shows upside movement in the counter. On a daily chart, the price has been trading with the middle leg of “Bollinger Band” which suggests a bullish rally will continue further in the near term. The stock is looking bullish on charts crossing above Rs 925 can show more strength in the counter for the target at Rs 990-1,040 levels while on the downside, the support comes at Rs 640 levels.
HDFC Bank
On the weekly chart, the price action settled strong traction above Rs 1,480 levels confirming bullishness in the stock. It is trading above 50-simple moving averages, confirming the support in price action. Moreover, it is also forming an inverse H&S pattern on the hourly chart. RSI plotted on the daily and the weekly timeframe is above 50 levels which reflects the strong momentum in the stock.
The Bollinger Band on the daily timeframe has started to expand with volume participation indicating that the volatility in the underlying is increasing for an upside move. Hence, based on the above technical structure one can initiate a long position at CMP Rs 1,485. However, on the safer side nearby Rs 1,478-1,480 levels would be a better range to enter. Closing and sustaining above Rs 1,500 will lead towards Rs 1,550-1,560 levels in the coming days. SL can be kept at Rs 1,458.
Indian Hotels
Since Sept 2021, the stock has been trading within the Rs 140-160 range. After that strong price action led to robust volume generated excellent return (CMP Rs 296.60) within 12 months’ time frame. On the monthly chart, the stock has been trading with higher high and higher low formation for the last 3 months which suggests continued strength upside. On the weekly chart, the stock has been trading in a rising wedge formation and crossed the upper band of formation which points out strength in the counter. As per the above technical parameters, the stock is looking bullish on the chart, one can buy the stock at CMP Rs 296, and a fall to Rs 287 is a good buying opportunity for a target of Rs 345-400 levels while on the downside, the support comes at Rs 250 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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