A Nifty move above 19,900 can take it to new highs: Analysts
Nifty is anticipated to trade within a range, and a move above 19,900 could trigger an extended rally possibly to new life highs, according to technical analysts. Conversely, in the event of profit booking, initial supports may emerge around 19,500-19,400. Stocks such as Bharti Airtel, Bajaj Auto, NTPC, Jindal Stainless, RIL, Lupin, BHEL, Divi’s Lab, Bharat Forge, and Oberoi Realty could attract strong buying interest, they said.
SAMEET CHAVAN HEAD RESEARCH-TECHNICAL AND DERIVATIVES, ANGEL ONE
Where is Nifty headed? Throughout the last week, the Nifty encountered resistance around the 19,850-19,900 zone, near the previous swing high.
To initiate momentum, a convincing breakthrough beyond these levels is required, potentially paving the way for a fresh upward movement towards 20,000 and beyond in the short term. Conversely, prices had already surpassed a key trend line resistance, leading to a buy on a minor dip during the last week. The breakout zone, coinciding with a bullish gap at 19,580-19,500, is viewed as robust support, and prices also defended the 19,700 level during the week, serving as immediate support.
What should investors do? We recommend buying Jindal Stainless around Rs 538-535 for a target of Rs 580 with a strict stop loss at Rs 514. Cholamandalam Investment looks a bit weak. In the week gone by, the stock finally touched below the strong support zone of the 89-day exponential moving average (EMA) placed at Rs 1,140.
