RAJESH PALVIYA
HEAD-TECHNICALS AND DERIVATIVES, AXIS SECURITIES
Where is the Nifty headed?
On weekly chart, Nifty has formed a bearish candle, forming higher high-low formation indicating positive bias. For the past 8-9 weeks, the index is consolidating within the broad range of 15,000-14,200 representing a short-term sideways trend. Nifty is facing supply pressure near 14,800-14,900. Chart pattern suggests that if Nifty crosses and sustains above 14,800 it would witness buying which would take the index towards 15,000-15,250. Important support for the week is around 14,400-14,200. Nifty is now well placed above its 100 SMA, indicating positive bias in the short term.
What should investors do?
Buy stocks, if Nifty corrects in near/short term to 14,400- 14,200 which is a strong support zone. We expect pharma, IT ,FMCG, textile and consumer durable sectors to show strength in coming weeks.
NAGARAJ SHETTI
TECHNICAL RESEARCH ANALYST, HDFC SECURITIES
Where is the Nifty headed?
Nifty on the weekly chart has formed a negative candle at the highs, which signals inability of the bulls to maintain the highs. After the upside breakout of down sloping trend line resistance in the previous week, Nifty slipped into weakness last week and is now placed at the previous upside breakout area of around 14,650- 14,700 levels.
What should investors do?
Investors may start creating long trading positions in the index and stocks at the lower levels. The confirmation of higher bottom at 14,591 is expected to pull the market on upside towards 14,900- 15,000 in the next one week. The formation of higher lows and repeated testing of the 15,000 hurdle could eventually result in a sharp upside breakout of the broader range movement in the near term
SANDEEP PORWAL
TECHNICAL & DERIVATIVE ANALYST, ASHIKA STOCK BROKING
Where is the Nifty headed?
The index is trading in a sideways range for the last eight weeks. The overhead resistance at 15,000-15,050 remains a shortterm supply zone. The sign of trend exhaustion has been observed in all sectoral indices. However, a lack of follow-up near the swing lows is limiting the downside. Nifty is likely to be rangebound. Among all the sectoral indices, Bank Nifty looks more vulnerable, below the level of 32,350 expect the bias to remain bearish.
What should investors do?
The bottom-up approach should continue where midand small-caps are likely to do well. In the large-cap universe, we expect FMCG and IT to do well. We like Britannia, Berger Paints, HCL Technologies and
for a short-term rally; while , ACC and Sriram Transport should remain underperformers both on a relative and absolute basis.
