Breakout above 21,600 could take Nifty to 22,000-22,200

economictimes.indiatimes.com:

Nifty is poised to take a pause and consolidate, maintaining a positive bias within the broader range of 21,600-20,800. Analysts suggest that any potential breakout above 21,600 could propel the index to a new all-time high within the range of 22,000-22,200. Stocks such as L&T, Reliance, HDFC Bank, Manappuram Finance, Maruti, GAIL, Hindalco, Arvind Fashion, Hind Oil Exploration, Graphite, Engineers India, Persistent, Mphasis, and Cummins are expected to sustain strong buying interest, according to analysts.

ARPAN SHAH, SENIOR RESEARCH ANALYST, MONARCH NETWORTH CAPITAL

Where is the Nifty headed this week? Nifty has rallied from 18,850 to 21,593 in the last two months.

After this 2,700-point rally, the index closed with a indecisive candlestick last week. FII index longs have reached 65.5% level, which is near the upper range. Nifty is likely to trade volatile in the 20,950-21,600 range in the coming weeks.

If it gives a breakout from this range, then it will have a directional move towards 20,500-20,300 level on the downside, while a breakout above 21,600 will take it to a new all-time high of 22,000-22,200.

What should investors do? Gold is trading near an all-time high level, and stocks like Manappuram Finance will have a positive impact. Any dip in the stock is a buying opportunity for the upside target of `200-220. Bajaj Finance closed with negative formation, and it is likely to go lower towards `7,000 in the coming days.

Maruti has closed with a bullish candlestick, while M&M has closed with a negative formation. A long Maruti and short M&M trade can be taken in these stocks. Hindustan Copper has given a fresh breakout on the weekly chart, and any dip towards `200 is a buying opportunity.