“The directional indicator and most oscillators show the strength and continuation of the upward trend. The fast stochastic has dropped, indicating volatility in the next few days,” he said.
Edited excerpt from the conversation:
How strong is the downside momentum there for good traders and do you think the 25,000 point is the biggest resistance?
The broader market, represented by the Nifty 500, showed signs of distribution all last week with gains becoming more flat, even as the Nifty continued to advance towards 25,000 on a daily basis. The divergence between the broader market and the benchmark index came to a head on Thursday, as the Nifty opened above 25,000 to initiate profit bookings, which although not overwhelming, signaled bullish exhaustion that would eventually force a gapped- open lower on Friday.
Ideally, this move should see 24,400-330 immediately, but directional indicators have not yet signaled momentum, and 49.6% of Nifty 500 stocks are still above the 10-day SMA, which suggests that the next pullback may require consolidation. the beginning. The noisy band at 24,850 should reject most of the upsides, but rising directly above 24,940 can put the Nifty back to 25,800 trajectory. A prospect from the same view is limited for now, but it can however be planned for, especially if the downsides are not present. beyond the 68.2 fibo of the new high-low at 24,540.
How to trade Nifty Bank? What are the key levels to watch out for?
The index biggies, ICICI Bank, SBI, Axis Bank, and Kotak Bank which together form around 57% of the index, look weak on the weekly chart with weekly MACD break signals seen on SBI and Axis. HDFC Bank which contributes only 30% to the Nifty Bank index looks positive on the daily and monthly charts and can provide support to the index. showing that the weakness is there.
While this suggests that bargain hunting cannot be denied, the 50,700 range, from around the recent weakness reversal, shows the potential for a deeper plunge to 48,000. This ensures a protective stop for a long time at 50,700.
Zomato was one of the biggest gainers of the week rallying around 17% amid optimism over Q1 results. Do you see momentum picking up in the coming weeks? What is the target for short-term traders?
Directional indicators and most oscillators show the strength and continuation of the uptrend. Flash stochastic has turned lower, indicating volatility in the next few days, but traders may continue to look at Rs 292 in the near term, with a stop loss at Rs 252 or Rs 240.
The CPSE index is doing well as one of the best sectoral performers. Where do you think PSUs like NTPC and Coal India are headed?
Last week’s pullback added another leg with support from NTPC and Coal India. IT could be a battle between the five big stocks in the index. Among the big five in the Nifty CPSE index in terms of weight, Powergrid, NTPC, and Coal India, which make up 50% of the index, are looking positive and could add positively.
However, ONGC and BEL, which together contribute almost 30% to the index, have seen a weekly Shooting Star candle and weekly MACD signal break, which could dampen the upside prospects of the index. The main support for the index is seen around 7,280 and 7,131 levels.
Submit your best ideas for this week:
Buy Delhivery (CMP: Rs 416)
Target: Rs 455
Stop loss: Rs 389
After moving in a Wedge pattern since January 2024, the stock has rebounded from the support of Rs 365 pattern last month and pulled back again. The weekly MACD will cross the signal line and the weekly RSI is hovering above 50, indicating strength. We expect the stock to move towards Rs 455 in the next few weeks. All longs can be protected with a stop loss below Rs 389.
Buy Hindustan Copper (CMP: Rs 310)
Target: Rs 345
Stop loss: Rs 294
After being in profit-booking mode since April 2024, the stock appears to have found a base near the 61.8% Fibonacci retracement level of 301 (March 2024 low and May 2024 high). The MACD histogram on the weekly chart has started to collapse due to fatigue. We expect the stock to move towards Rs 345 in the next few weeks. All longs can be protected with a stop loss below the 294 level.
