Rally may take Nifty to 9,550-9,800 levels
There is a higher bottom formation on daily charts and strong support clusters at 8,800-8,600 on the lower side. For the Bank Nifty, one must maintain a buy-on-dips approach towards the 19,400-19,000 on the downside which is likely to act as a cus...
By ET Bureau |
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MANAV CHOPRA TECHNICAL ANALYST, INDIABULLS SECURITIES
Where Are We?
There is a higher bottom formation on daily charts and strong support clusters at 8,800-8,600 on the lower side. For the Bank Nifty, one must maintain a buy-on-dips approach towards the 19,400-19,000 on the downside which is likely to act as a cushion in case of a decline.
What Is in Store?
The Nifty has bounced from its weekly oversold levels and short-term trend reversal confirmation hints at a rally toward the 9,550-9,800 levels in the near term. The Bank Index has shown relative underperformance and is likely to witness a catch-up rally once the index decisively closes above the 20,000 levels for higher targets towards 21,400-22,000 in the short term.
What Could Investors Do?
Tata Motors and Balkrishna Industries can see an upside of 15-20% in the short term. Pharma and FMCG sectors are likely to continue outperformance and Divi’s Lab, Dr Reddy’s, Britannia and United Spirits may see an upside of 10-15% from the current levels.
Where Are We?
There is a higher bottom formation on daily charts and strong support clusters at 8,800-8,600 on the lower side. For the Bank Nifty, one must maintain a buy-on-dips approach towards the 19,400-19,000 on the downside which is likely to act as a cushion in case of a decline.
What Is in Store?
The Nifty has bounced from its weekly oversold levels and short-term trend reversal confirmation hints at a rally toward the 9,550-9,800 levels in the near term. The Bank Index has shown relative underperformance and is likely to witness a catch-up rally once the index decisively closes above the 20,000 levels for higher targets towards 21,400-22,000 in the short term.
What Could Investors Do?
Tata Motors and Balkrishna Industries can see an upside of 15-20% in the short term. Pharma and FMCG sectors are likely to continue outperformance and Divi’s Lab, Dr Reddy’s, Britannia and United Spirits may see an upside of 10-15% from the current levels.
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