In this chat he also shares the top 3 ideas for the coming week. Edited fragments:
Nifty finished the week about 1% lower to register the sixth consecutive negative weekly falls. How Bearish are we in the charts?
Nifty registered its sixth consecutive weekly decline and marked one of the longest pieces losing on the weekly graph. In its history there have been very few cases in which the index placed five or more consecutive weekly declines, with a valley of nine weeks declining the longest at the beginning of 2001.
On Friday, the Nifty moved to the south, because it could not maintain above 50 EMA on the hourly table, which indicates persistent sales pressure. In addition, the index closed under the crucial level of support of 24,400, which enhances the strength of the bears. The sentiment was already crooked to the bearish side, with the index forming a pattern with a lower bottom with a lower bottom. The short-term trend remains weak, with potential downward goals at 24,150-24,200 and even 24,000 or lower. On the other hand, this Bearish trend will probably reverse if the Nifty manages a decisive movement above 24,660.
Do you think that the increase we have seen in Nifty PSU bank is sustainable or that there could be a profit booking?
During the week, the Nifty PSU Bank Index saw a mild increase because it found support on the 21 EMA on the weekly graph for the second consecutive week. Given the strong bearish sentiment on the wider Indian stock market, it is difficult to expect that the index will stay above the 21 -week EMA in the coming weeks. A decisive fall below 6,750 could cause a strong downward trend in space, while a movement above 7,000 can attract a new purchase interest.
The wider market saw sharper cuts in the week. Do you think this relative underperformance can continue, because traders remain careful in the midst of rate -related stress?
As the tariff war between India and the US increases, traders quickly loaded their lifting tree positions in most risky midcaps and small caps, which led to sharp falls in the indices. With uncertainties that persist, further cutbacks are most likely in the short term. From a technical point of view, the index under 21 EMA slipped on the weekly period, indicating that rising Bearish bets are in space. That is why it will be wise to stay careful in the short term.
PG Electroplast shares fell by 20%on Friday. Do you see some soil -fishing opportunities for the bow?
The stock has witnessed a sharp decline and has been demolished from his recent consolidation phase. Moreover, the fall was accompanied by large volumes. The graph looks extremely weak and further disadvantage seems likely. Leaving bounces seems like a better strategy than trying Bottom Fishing.
Give us your top choices for the coming week.
Buy Medanta above 1420 | Goal: 1500 | Stop-Loss: 1379
The share has given a strong outbreak of recent consolidation, which indicates increasing optimism among investors. The RSI indicator is in a bullish crossover and trending up, to support a positive price momentum. The stock has kept above the critical advancing average on the daily graph. In the short term, the price probably remains strong with the potential to rise to 1500, while the support is placed on 1379.
Buy CDSL above 1565 | Goal: 1620 | Stop-Loss: 1520
The stock has broken out from a consolidation phase, which increases the possibility of a bullish trend in the short term. A persistent movement above 1565 can further strengthen the positive momentum. In the short term, the trend is expected to remain positive with the potential to go to 1620, while a decrease under 1520 could weaken sentiment.
Sale Tata Motors Aug Futures around 635 | Goal: 615 | Stop-Loss: 646
The stock has been taken from recent consolidation, which activates Bearish sentiment. Under the most important progressive averages on both the daily and the hourly texts, it confirms, which confirms a downward trend. Further correction may seem possible from the current level, with potential to reach 615 in the short term. On the higher side, resistance is placed on 645-646; A break above this range can reverse the current trend.
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