Bank, pharma, realty, media poised to outperform

By Nagaraj Shetti, Technical Research Analyst, HDFC Securities

What is in store?
Overall chart is still indicating positive trend and there is no sign of any tiredness or reversal pattern in the Nifty.

What is in store?
Long traders need to protect profits with stop losses. Weekly momentum oscillator may not be signalling an immediate reversal, but could suggest that the upside momentum could lose its strength in the coming weeks.

What to do?
The near-term trend of Nifty continues to be up and short-term trend is choppy with positive bias. Though Nifty is at the all-time highs, there is no formation of any reversal pattern yet.

However, indication of tiredness could be seen in the momentum oscillator front. The next upside levels to be watched is around 10,550-10,625 in the next couple of weeks. Banking, pharma, media and realty sectors could outperform and FMCG & IT could underperform in the next one-two weeks.