Edited fragments from a chat:
Nifty managed to break a 6 -week loss to end more than 1% higher. How would you exchange the market on Monday if the market would respond to the outcome of the Alaska meeting?
Directional moving indicators are still in favor of more disadvantages with 24000 and 23560 as a potential downside support by attracting lower prices. That said, last week saw various attempts to push higher, which gave us a reversing hump. Apparently none of those movements succeeded in successfully closing above the 24670-720 band, the congestion resistance in the short term; They have succeeded in bringing the parabolic SAR under the price and to give a positive bias. What is more important, the wider market has shown even better signs of resilience, with the highest number of Nifty 500 voters that have been closed above 10-day SMA since 24 July. Incidentally, Nifty fell out of the 25200 area on that day. This would be the goal we would strive for, if we erased above 24720 on Monday.
Nifty PSU Bank Index surpassed the Nifty Bank with a wide margin. Will this preference for PSU banks also maintain the coming week?
The recent rally in the index was largely fed by strong performance by SBI, even when banks in the private sector are left behind. In particular, the PSU Bank Index is broken above both daily and weekly super trend indicators, which forms a bullish Marubozu candle on the weekly graph. This outbreak over a falling trendline suggests a positive momentum shift.
However, the index is approaching a key resistance at the 61.8% Fibonacci retracement level of 7090, which could cause some profit booking in the short term. Derivatives also indicate caution, whereby 43% of the near-the-valid call options show signs of short build-up-somewhat limited bullish sentiment among traders for the time being.
Nevertheless, the broader prospects remain optimistic. The average RSI of large PSU bank shares floats around 53, which indicates fair ratings and space for further upwards. Although a pullback is almost resistance, bulls are expected to regroup and push the index higher in the upcoming sessions.
HBL engineering shares were among the best profit in the Nifty 500 package and ended about 29% higher. Is there more steam left in the rally?
A new record peak ensures an exciting case of participating in the rally with eyes on RS 858 as the nearest objective. For four days, however, pushing above the upper Bollinger tire certainly evokes a number of speed. Newcomers must see if their risky appetite makes a stop loss possible near RS 730 or RS 680.
Muthoot Finance shares also ended 10% higher on Friday after the target priceup grades on Q1 Beat. What would your target be in stock?
We look at RS 3000 in the stock, after we have broken out from the Zijwaart band that has been traveling since the beginning of June. Our Neerwaartse Marker would be 2,675 or RS 2,635, which is close to the 20-day SMA.
Give us your top ideas for the coming week.
Chalet (CMP: 933)
View: buy
Goal: 955
Stoploss: 918
The stock has returned from an important horizontal support near 850, which also fits in with the 200-day simple advancing average (DSMA), which suggests a potential trend removal. From a technical point of view, the MACD has crossed over its signal line and the RSI is above its 14-day average-to-fact indicators that point to the reinforcement of the Bullish Momentum.
Moreover, the shares have recently broken above the SMAs of 20 days and 50 days, which strengthens the positive prospects. Based on this setup, the stock is expected to go to the 955 level in the short term. Traders who hold long positions must consider placing a stop-loss under 918 to protect against the downward risk.
Asterdm (CMP: 605)
View: buy
Goal: 622 – 650
Stop loss: 584
The stock has recently reflected from an important horizontal support level at 574, which also coincides with the 200-day simple advancing average (DSMA), which indicates a potential reversal. On the daily graph, the MACD has been crossed above its signal line and the stock is also moved above 20-day and 50-day DSMAs from the Bullish Outlook.
These technical developments suggest Opwing Momentum, and we expect the stock to go to 622 and 650 levels in the coming weeks. Long positions must be protected with a stop-loss placed under 584 to manage the downward risk.
((Indemnification: Recommendations, suggestions, views and opinions of experts are their own. These do not represent the views of economic times)
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