Experts predict a lot of volatility given the Union Budget week, but if the Nifty manages to hold the 50 WEMA, then there are fair chances that the index can easily surpass the 17,800-18,200 zone in the coming days, followed by 18,500
Rohan Shah of BP Wealth is bullish on Ashok Leyland, Max Healthcare, Supreme Industries, IRCON, and Apollo Tyres as he sees 17,470-17,420 as a strong support zone for Nifty50.
ITC has formed bullish candle on the daily charts with higher high formation for fourth straight session, with above average volumes for last several sessions. It has given a decent breakout of long downward sloping resistance trend line adjoining multiple touchpoints at higher levels (November 9, November 11 last year, and January 25, 2023).
Though Max Financial Services might look lucrative after a 33 percent up move in the current month whereas broader market almost remained negative. But one needs to be cautious and look at the bigger picture.
The 200-day exponential moving average (17,550) and January 27 low of 17,494) are the two levels to watch, though a minor pullback rally can't be ruled out after the bloodbath, say experts
Route mobile was also in focus, rising 1.4 percent to Rs 1,247 and formed bullish candle with long upper shadow on the daily charts, indicating some profit booking at higher levels.
Carborundum Universal took strong support at 20-month SMA and sustaining at 11-month high. This shows overall bullish undertone of the prices.
The Nifty, he says, has to hold the 17,777 zone for any kind of upward move. If it doesn’t, the index may fall to the 17,500-17,350 range. The metal index is trading near its life-time high and can hit 7,000, Taparia says.
The index remained below the 50-day exponential moving average on the daily timeframe, confirming the bearish trend.
Container Corporation of India, Yes Bank, LTIMindtree, Gland Pharma and SBI Cards & Payment Services are among the stocks, on which broking houses have cut the target price.
The sentiment may remain negative below 18,000 and the decisive break below 17,800 can drag the index to 17,700-17,600, with resistance at 18,000-18,200 levels, experts said.
L&T Technology Services was also in action, rising 3 percent to Rs 3,426 and formed bullish candle on the daily charts with upper shadow, with higher high higher low formation after forming Bullish Engulfing kind of pattern in previous session. The volume remained high for yet another session.
Gravita India is in an awesome uptrend with a breakout of long consolidation and strong volume. The overall structure of the counter is very lucrative, as it is trading above all important moving averages. On the higher time frame, there is a breakout of a Bullish Flag formation, which suggests much more potential upside in this counter.
Going forward, the psychological 18,000 mark is expected to be crucial support for the index and 18,200 is likely to be key resistance area as surpassing it on a closing basis can take the index to 18,300-18,500 levels, experts say
GAIL India shares hit Rs 100 mark after a long time and rallied more than 3 percent to Rs 102.25, the highest closing level since May 20, 2022 and has formed long bullish candle on the daily charts with strong volumes, with higher high formation for fifth consecutive session.
IOC has broken out on the weekly chart from the downward sloping trendline adjoining the highs of April 22, 2022 and December 16, 2022. Trend of the stock is positive as stock price is trading above its important moving averages.
The Nifty has to decisively surpass the last week's high of 18,184 to gain momentum. Initial hurdles will be 18,200 and 18,300, while support will be at 18,000, experts said
Some analysts have started upgrading their rating on the stock as prices have fallen a lot and valuation is turning favourable.
The upcoming week can be approached with a low-risk strategy like modified Put Butterfly in Bank Nifty.
To negate the downtrend, Nifty has to surpass 18,500 on a closing basis, says Vinay Rajani of HDFC Securities.
Experts feel the 17,800-18,200 range is expected to break on either side after the announcement of the Budget, hence, if the Nifty breaks 18,200, then 18,500 is the level to watch out for
Swan Energy was in focus last week, rising 11 percent to at record closing high of Rs 362 and formed large bullish candle on the weekly timeframe with above average volumes. It has seen a breakout of horizontal resistance trend line adjoining May 2, 2022 and January 2, 2023.
Taking a glance at the rising volumes, we expect the momentum to extend in Dabur India in the forthcoming week.
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The options data indicates that the Nifty will continue to trade in the 17,900-18,200 range for the coming sessions