Where are you seeing Nifty 50 as well as Bank Nifty headed for the upcoming week because we have a lots of factors that will be in play, the crucial one will be Jackson Hole Symposium and the global markets are not on the positive side so how do you see Nifty as well as Bank Nifty placed currently.
This is the fourth consecutive week where we are seeing sustained selling pressure taking place on the Nifty as well as on the Bank Nifty also. Nifty has now slipped below its important support area of around 19,400 and now we are trading below that level.
Nifty is approaching its next critical support area of 19,200. If we look at the overall call put concentration so 19,200 is having now major put writing activity. So, if at all Nifty breaks below 19,200, then this fall may extend further and then possibly Nifty can slide towards 19,000 level also.
On the other hand, the call writers are now shifting their position on the lower strikes, so major writing activities witnessed during the week around 19,400-19,300 strikes. So, looking at the overall data setup, looking at the near-term setup, we expect that whatever minor pullback if at all we see in the market towards 19,400-19,500 that will meet again to the supply pressure on the higher side, so it looks to be a negative bias for near term setup.
Range for the coming week would be around 19,450 to on the lower side 19,100, this could be the possible range we can see for Nifty.
Bank Nifty has slipped below to 44,000 level and the immediate and critical support area for Bank Nifty is at 43,600. If at all Bank Nifty breaks below 43,600, then this down move can extend further towards 43,200 which is the next major put base for the coming weeks.
So, for the Bank Nifty we are projecting a range for the coming week to be around 43,200 to 44,200. So this could be the possible range for Bank Nifty, but bias is again on the negative side so sell on rise is the strategy for Bank Nifty also.
Just touching upon the Reliance move on Friday’s session post the announcement of the Reliance Jio listing that is on Monday, we saw a sharp spike coming in. So, how do you see Reliance is placed currently and how it is expected to support the Nifty 50 index indeed?
Yes, so in the second half, some recovery was there just because of Reliance Industries only and stock again recovered from the 2500 support area. Looking at the near-term, short-term setup on the higher side, 2600 is having major call writing activity.So, if at all Reliance Industries manage to cross above 2600, then there would be a short covering action we can see in the stock and then this rally can extend towards the 2640, 2660 zone on the higher side.
But looking at the near-term, the range for the stock is 2500 to 2600.
So, either side, breakout or breakdown will decide the major direction for the stock.
But since the last three-four weeks, there is a buying interest from the lower level and stock is holding about to its long-term moving averages, so still the long-term view is on the bullish side but for near-term we are expecting some range-bound behaviour.
The interesting move can be witnessed only above 2600 level so that level needs to be watched for the next week to determine whether we are able to cross this level or not. So, above 2600, yes, one can take a trading bet also for short-term momentum towards 2640, 2660.
Nifty has declined for the fourth straight week and is also at its six-week low. So, amid a market like this, what are the picks that you are spotting for us?
Some of the stocks where outperformance is there, we are having a bullish view on the stocks. First stock is Bharat Forge which has seen sustained uptrend in the stock. This is the third consecutive month where stock is showing good strength.
In today’s session also, there was a long build-up. So, Bharat Forge is a buy for upside target of Rs 1000, keep a stop loss of Rs 952. Another stock which we like from F&O segment is Adani Port. Whole Adani Group stock has shown good traction and a long build-up was there. So, Adani Port we like for next week, upside target we are projecting Rs 875, one can buy with stop loss of Rs 815.
And third one is Jyothy Lab. Very strong buying action throughout the week and stock is holding above all its important moving averages and showing good buying interest. So, we are projecting a target of Rs 375. One can buy with a stop loss of Rs 325.
