By Ajit Mishra
Markets have finally reached a record high after spending over a year in a corrective phase. In the recent leg of the up move, recovery in the global markets combined with favourable domestic cues has played a critical role. Meanwhile, restricted participation from the index majors and continued underperformance by the broader indices are still weighing on the sentiment.
Nifty (CMP:18,562.75) – We expect Nifty to take a breather around 18,700 first and then inch towards the new milestone of 19,000. Traders should continue with the “buy on dips” approach till Nifty manages to hold 18,100.
Bank Nifty (CMP: 43,020.45) – We may see some breather in the banking index initially after the recent outperformance and expect other sectors to fill in. We believe the 41900-42100 zone would act as strong support while the index may face a hurdle around the 43,800-44,250 zone.
However, the tone would remain positive and we recommend focusing on the stocks on accumulating top names from the private banking space. The PSU banking index has recently tested the major trendline hurdle around 4150 levels so it’s prudent to maintain hard stop losses in the existing positions and recommend maintaining extra caution while making a fresh trade.
Stocks to Watch
Within the F&O basket, ACC, Bharatforge, Dabur, Escorts, Exide, Gail, HDFC AMC, IGL, Indusind Bank and Persistent are strongly placed on charts.
(Ajit Mishra is the VP- Technical Research at Religare Broking Ltd. The views expressed are author’s own).
