Nifty rally has enough steam left to move closer to 25,000: Analysts
Experts suggest a moderately bullish strategy for Nifty options with defined risk and reward. Jio Financial Services and Hero MotoCorp are recommended buys with specific price targets. Ashok Leyland and Havells India also present buying opportun...
By ET Bureau | Updated:
Agencies
The Nifty 50 advanced nearly 2.6% in the past week and has the potential to move higher towards the 24,500-24,600 and then the 25,000 levels. Analysts recommend maintaining a positive view on the index for traders.
The Nifty 50 advanced nearly 2.6% in the past week and has the potential to move higher towards the 24,500-24,600 and then the 25,000 levels. Analysts recommend maintaining a positive view on the index for traders.
RAJESH PALVIYA, HEAD OF RESEARCH, AXIS SECURITIES Trading Strategy The recommended strategy for Nifty options for the 11 August 2026 expiry is a Call Spread, ideal for a moderately bullish market outlook. The trader buys one lot of the 24,400-strike Call option at a premium of Rs 165-Rs 145 and simultaneously sells one lot of the 24,700-strike Call option at a premium of Rs 55-Rs 65. This strategy limits both risk and reward, creating a defined range for outcomes. The break-even point is at 24,510, with a maximum potential loss of Rs 7,150 and a maximum profit of Rs 12,350.
Rationale: The stock has delivered a decisive weekly breakout on its highest volume, ending a five-month consolidation and pushing the daily RSI above 60 to its highest level this year. Robust 97.4% rollovers reinforce bullish momentum. Buy on dips towards Rs 250-245.
Hero MotoCorp: Buy | CMP: Rs 5,386 | Target: Rs 5,650-5,700 | Stop loss: Rs 5,200-5,180 Rationale: The stock has broken above a seven-month downward trendline, closing at a four-month high with strong RSI momentum above its 200-DMA. Robust 92.9% rollovers, a 7.5% price surge, rising PCR to 0.86 and aggressive Put writing support buying on dips at Rs 5,320-5,260.
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ROHAN SHAH, TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENT INTERMEDIATES Trading Strategy: The index concluded the month around the neckline of the prolonged triangle pattern. After three months of persistent resistance, it has finally closed above the 20-month moving average. A decisive breakout from the pattern could pave the way for fresh upside momentum. Buy Nifty futures above 24,600 for an upside target of 25,300-25,500, with a stop loss below 24,100.
Rationale: It has rebounded strongly after finding support around the long-term support zone on robust volumes. On the smaller time frame, the stock is anticipated to register a breakout from the Inverse Head & Shoulders pattern, indicating potential for further upside.
Rationale: The stock has broken out from a multi-week basing pattern formed at the long-term support zone. The price and volume breakout, coupled with improving momentum, suggest the stock is well placed to extend its upward move.
Trading Strategies Nifty 50: From a trading perspective, a buy-ondips strategy is advisable in the 24,200-24,300 zone, with a stop loss at 24,100. On the upside, the index has the potential to move towards 24,500- 24,600 initially, followed by the 25,000+ level.
Bank Nifty: Bank Nifty also witnessed a healthy recovery after the sharp correction seen in the previous week. Immediate resistance is placed around 57,800. A sustained breakout above this level could open the door for a move towards 58,600. On the downside, the 56,500-56,700 zone is expected to provide immediate support, followed by a stronger support band between 55,600 and 56,100.
Rationale: It has broken decisively above the Rs 1,950-1,960 resistance zone, supported by strong bullish price action and improving momentum. The stock is trading above its 20-, 50-, and 200-day moving averages, confirming a robust uptrend, while the RSI continues to strengthen without entering overbought territory.
Rationale: Sona Comstar has broken out of a prolonged consolidation on strong volumes and is trading above its 21- and 100- week moving averages, confirming a medium-term uptrend.
