Improvement of the sentiment can take Nifty to 25,500: analysts

Nifty 50 recovered the 25,000 Mark last week. Technical analysts indicate that market sentiment and the index show signs from gradual movement to 25,500. On the other hand, there are immediate supports between 24,900 and 24,700. Analysts expect that banks, financial data, cars, consumption themes and metals will perform better.

Dharmesh Shah
Vice President, Head of Technicals, Icici Securities

Where is Nifty going this week?
The formation of higher highs and higher layer, supported by improving the market width, gives us confidence that Nifty will experience a decisive outbreak of the contract triangle (25,100-24,400) and gradually go to 25,500 in the coming weeks. The most important heavyweights such as Bank Nifty and IT, which together make up 45% of Nifty’s weight, prepare for the next part of the upward trend, which could push Nifty higher.

Trade strategy for the week:

Each decline must be used as a buying option, with immediate support at 24,700. Sectorally, BFSI, car, consumption and metals are expected to perform better, while beaten sectors such as IT, capital goods, infrastructure and PSUs offer bargain purchases. In the field of shares, large caps such as SBI, Axis Bank, TCS, Maruti Suzuki India, Bharat Electronics, Ambuja Cement, L&T and Tata Steel are ready for ~ 5% Forward. In the Mid-Cap Space, Railtel Corporation, Persistent Systems, Sagar Cements, Exide Industries, City Union Bank, Apollo Tyres, KEC International, Chalet Hotels and Astra Microgave Products look good for 8% profit.

Tanmay Shah
Research head, sihl

Where is Nifty going this week?
The market seems ready for a new rally, with 24,700 as strong support. This week the index will probably continue to 25,525, and a persistent close to this level can clear the road for new all-time highlights. Trade strategy for the week:
Every short -term correction must be seen as a buying option with a focus on quality shares for medium to long term. Sectors that are ready to take advantage include banking and financing, FMCG, car and insurance. Under LargeCaps, Icici Bank, HDFC Life Insurance, Nestlé India and TVS look attractive. Marico, Indian Bank and Lic Housing Finance stand out in the Mid-Cap room, while City Union Bank and Bikaji Foods International offer potential for small caps.

Sudeep Shah
Head, Technical & Derivative Research Desk, SBI Securities

Where is Nifty going this week?
Nifty is in the graphs at a critical moment. It is about to break out of a symmetrical triangular pattern on the daily period – an arrangement that usually precedes a sharp directional movement. The index is traded above both the advancing averages in the short and long-term, which have started upwards-a bullish sign. The market width has improved considerably, 82% of the Nifty shares are above their 20-day EMA and 76% is above their 50-day EMA, which is a reflection of width participation.

Main levels to view: 25,150-25,200 Zone will act as a resistance in the short term. A persistent movement above 25,200 could activate a sharp rally in the short term to 25,500 and eventually 25,700. On the other hand, the zone of 24,950-24,900 is expected to offer strong support.

Trade strategy for the week:
The current rally is supported by strong movements in the defense, the public sector and IT shares, which show signs of potential trends. In addition, metals, financial data, pharmaceutical, health care, cars and sustainable consumers also show persistent force. A stock -specific approach is the key. Picks include Hindustan Aeronautics, Bharat Electronics, BEML, Dr. Reddy’s, Bajaj Finance, Bajaj Finnish, National Aluminum, Hindalco and L&T