“A resumption of the current uptrend might be seen above 21000, with the potential to reach towards 21550. On the lower end, put writers have built significant positions at 20900 and 20800; below these levels, profit booking might increase,” he says. Edited excerpts:After the fast-paced rally seen in the week, do you predict some consolidation? What are the key levels to watch out for Nifty F&O traders?
During the week, the Nifty witnessed a spectacular rally following a swing-high breakout on the daily chart. This suggests a rise in optimism among market participants. However, the Nifty consolidated in the later part of the week.
Going forward, 21000 is likely to act as a crucial level for the Nifty as call writers have built their maximum positions at that strike price. A resumption of the current uptrend might be seen above 21000, with the potential to reach 21550. On the lower end, put writers have built significant positions at 20900 and 20800; below these levels, profit booking might increase.
Do you think that the 2,500-point rally in Nifty Bank in just 5 days has more steam left after a long round of consolidation? How strong is the resistance above the 47,000 mark?
Bank Nifty witnessed a significant rally during the week but has been consolidating around 47,000 post-rally. A breakout from the current consolidation level could push the index towards 48,000 in the short term. Support is placed at 46,500, where put writers have built significant positions. A decisive move above 47,200 might trigger a significant rally.
Power stocks have been the highlight of the week. What are the charts indicating and which stocks have more steam left?
Power stocks witnessed a staggering rally during the week, fueled by significant volume, indicating broad-based participation. The trend remains positive for the medium to long term from the current level. Any dips in the pack should be used as good buying opportunities.Tata Power shares rallied around 20%. What would be your trading strategy?
Tata Power has moved up sharply following a swing high breakout on the daily chart. Additionally, the price has sustained above the critical moving average. Dips in the stock should be used as buying opportunities. On the higher end, the stock has resistance at Rs 330. A decisive breakout above Rs 330 could push the stock towards Rs 394. Support on the lower end is seen at Rs 300.
PSU bank stocks are also having a dream run. Which ones would you bet on at this stage?
Nifty PSU Bank Index has rallied significantly due to a breakout from a falling trendline on the monthly chart. The trend is likely to remain positive over the medium term, making short-term corrections ideal opportunities to enter the PSU banking space. Bank of India and SBI are looking good in the space for the short-to-medium term.
Give us your top trading ideas for the week ahead?
Buy MOTHERSON 95 TGT 110 SL 90
The stock has broken out of a consolidation pattern on the daily chart, suggesting increased optimism. On the daily chart the stock is hovering within a broadening wedge. Additionally, it remains above the critical moving averages, further indicating an uptrend. In the short term, the stock may reach 110 as long as it stays above 90.
Buy INDIACEM 272.50 TGT 300 SL 260
INDIACEM has moved up higher following a consolidation on the daily chart, suggesting increased optimism. Additionally, it remains above the critical moving averages, further indicating an uptrend. In the short term, the stock may reach 300 as long as it stays above 260.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
