3 stock ideas from Rajesh Palviya for the week ahead
“Nifty is now holding above the major put-based concentration of 21,800-21,900; if these levels are intact in the coming trading session then possibly we can see a target towards 22,300 in the continuation of this up move for Nifty spot,” said Rajesh Palviya of Axis Securities. Edited excerpts:
What move are you expecting to see in the markets ahead? Also, what is your outlook on the broader indices?
Nifty is comfortably trading above 21,850, which was the major supply area. And if we look at the weekly close, this is the highest weekly close which we are registering today on Nifty. Looking at the overall data setup, there was a short covering in earlier days and then was followed by the long built-up setup in Nifty, which clearly shows this momentum can extend further.
Nifty is now holding above the major put-based concentration of 21,800-21,900; if these levels are intact in the coming trading session then possibly we can see a target towards 22,300 in the continuation of this up move for Nifty spot. Overall, the structure is bullish. Most of the sectors are now contributing to this rally, be it IT, metal, cement and other sectors. Banking has also started contributing to this upward momentum. So, the broader market is clearly indicating that this rally can extend in the coming week and one should remain on the long side of trade with a stop loss of 21,800 and upside target 22,300.
Bank Nifty is still showing a little underperformance compared to Nifty. But overall, from a near-term perspective, the trend is
