Buy GMR Infra, India Info, IVRCL on dips: Anand Rathi's Satpute
Rajesh Satpute, technical analyst at Anand Rathi Securities, says accumulation will be the best strategy in a falling market.
By ET Online |
MUMBAI: Rajesh Satpute, technical analyst at Anand Rathi Securities, says accumulation will be the best strategy in a falling market.
Nifty made a gap-up opening of nearly 200 points on July 23. This gap has to get filled technically. To fill this gap, Nifty future has to touch 4220 level for the next advances.
Nifty has exhibited a short-term bullish trend reversal formation, creating positive sentiments in the market which will lead Nifty to touch 4770 in near term.
We can say that the short term target for Nifty will be 4800 but before that, we expect a correction till 4220, 4120 levels. Buying on dips in small chunks is a strategy one should adopt.
Important support levels for Nifty are 4330, 4220, 4120, while the index will face resistance at 4650 and 4770.
Amongst sectors, power stocks look vulnerable on the charts while scrips like GMR Infrastructure, DLF, IVRCL in real estate and infrastructure and midcap banks like Vijaya Bank, Andhra Bank, Development Credit Bank and Canara Bank are likely to witness upward momentum. One should accumulate these stocks and exit State Bank of India, ICICI Bank, Infosys Technologies and Tata Consultancy Services.
By the year-end, Nifty futures could test 3,600 if it breaks 4020. On the upside, if it breaks 5200, we could see the old high again.
Nifty made a gap-up opening of nearly 200 points on July 23. This gap has to get filled technically. To fill this gap, Nifty future has to touch 4220 level for the next advances.
Nifty has exhibited a short-term bullish trend reversal formation, creating positive sentiments in the market which will lead Nifty to touch 4770 in near term.
We can say that the short term target for Nifty will be 4800 but before that, we expect a correction till 4220, 4120 levels. Buying on dips in small chunks is a strategy one should adopt.
Important support levels for Nifty are 4330, 4220, 4120, while the index will face resistance at 4650 and 4770.
Amongst sectors, power stocks look vulnerable on the charts while scrips like GMR Infrastructure, DLF, IVRCL in real estate and infrastructure and midcap banks like Vijaya Bank, Andhra Bank, Development Credit Bank and Canara Bank are likely to witness upward momentum. One should accumulate these stocks and exit State Bank of India, ICICI Bank, Infosys Technologies and Tata Consultancy Services.
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By the year-end, Nifty futures could test 3,600 if it breaks 4020. On the upside, if it breaks 5200, we could see the old high again.
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