With the selling pressure from foreign institutional investors having reduced, good cues from the global, especially the US markets are expected to dictate the Indian indices, Zee Business Managing Editor Anil Singhvi said while laying out the strong strategy on the stock market for Monday.
The managing editor said, “Nifty will have strong support from 15.900 to 16.000. Nifty will try to move from 16,400 to 16,475. Bank Nifty will have support between 33,800 and will hold resistance between 34,800-35,000.”
The Indian markets on Friday rebounded sharply and gained nearly 3%, in continuation of the prevailing volatile trend. The benchmark witnessed a gap-up opening, taking cues from the Asian counterparts, and gradually inched higher as the session progressed.
Consequently, the Nifty settled around the day’s high, to close at 16,270 levels, while BSE Sensex closed over 1500 points higher. All the sectoral indices ended in the green with metal, pharma, and realty being the top gainers. Midcap and smallcap, also ended higher in the range of 2-2.4 per cent.
Going ahead, global cues, the last leg of earnings, and updates on the Russia-Ukraine war will be on the radar, Ajit Mishra, VP – Research, Religare Broking Ltd in his comment for Monday’s trend said, reiterating an advice to focus more on managing risk and preferring hedged bets.
Similarly, ICICI Securities said, “Going forward, cool off in volatility will help Nifty to surpass 16400 levels and head towards 16800 in a nonlinear fashion. Buying dips towards 15800-16000 would be rewarding as strong support exist around 15600 levels.”
Sectorally, Auto, Metal, BFSI (Banking, Financial Service and Insurance) and capital goods stocks provide favourable risk-reward at the current juncture, the brokerage said.
In large caps, ICICI Securities prefer Reliance industries, SBI, Kotak bank, ITC, Maruti Suzuki, Hindalco, Cipla while in midcaps it prefer ABB, Ashok Leyland, Apollo Tyres, Automotive Axles, Hindustan Aeronautics, Indian Hotel, PVR, Tata Chemicals, SRF, NMDC, Elecon Engineering.