Nifty, Bank Nifty facial pressure; Rajesh Palviya warns that it can weaken further

Rajesh Palviya, Axis Securities, shared his prospects in the markets and trade strategies in the midst of increased volatility. He noted that uncertainty resulting from global signals, in particular comments from US President Trump, has kept investors carefully despite various reform -driven announcements of the Indian government.

According to him, the Nifty crucial support zones has broken, in particular the 61% retracement level of the recent rally nearly 24,800. This breakdown has pushed the index under both the advanced averages of both 20 days and 50 days. Although the PUT-CALL ratio is at a sold-up level of 0.63, the index has not demonstrated a sign of recovery. India Vix was added to the pressure and climbed to 11.5, which reflects a representation of raised volatility. Sectoral indices that were previously on an upward trend have also witnessed profit booking.

“Most sector indices that were in the upward trend have hired profit booking because of this uncertainty. So if this kind of news flow comes from the US, the market could not put on a persistent buying action and trend probably shows on the weaker side,” he said.

A break under 24,500, he warned, could activate the liquidation and drag the index to 24,350. Conversely, if a pullback is created, 24,800 can act as the first supply zone, with a scope for recently covered if the level is surpassed.

On Bank Nifty, Palviya emphasized that the index has decided its 55,000 support and is now being traded closer to 54,500. Persistent trade below this level can extend the decline to 54,000. For the coming week, he expects Bank Nifty to act within the reach of 54,000 – 54,800.

With regard to sectors, he pointed out that stocks are under considerable pressure. Despite the wider markettrallies earlier, Nifty could not show the Bullish Momentum. The index has now fallen below 34,000, critical support on weekly graphs, which suggests that further disadvantage. The recent H-1B visa-related developments have activated the settlement of long positions in both Largecap and Midcap IT names. “Largecap IT shares are still under pressure. There is no recovery. Most shares have also broken their previous swing low, so it also shows weakness in the short term in the short term,” he said. With the structure still negative, Palviya foresees more weakness, with 33,250 as the next downward level. He advised investors to avoid the IT room for the time being, because sectors are already showing weakness that usually restore the last in volatile markets.

On stock -specific recommendations, Palviya maintained a bullish attitude towards Ashok Leyland. The share has sustained its breakout levels despite the market volatility and could continue to £ 150-152 in the short term, with £ 136 as a stop loss. On the short side, he advised Biocon that large support zones broke and went under all progressive averages in the short term. He sees potential disadvantage to £ 326 and advises a loss of stop at £ 346.

((Indemnification: Recommendations, suggestions, views and opinions of experts are their own. These do not represent the views of economic times)