Bullish patterns hint at further upside, Nifty may touch 22,500: Analysts
economictimes.indiatimes.comNifty could reach 22,500 if it maintains levels above 21,800. Alternatively, support is seen at 21,600 levels, according to technical analysts.
They note positive setups in various stocks, including Maruti, TVS Motor, ACC, Biocon, Tata Motors, M&M,Persistent, Ambuja Cements, Adani Ports, Federal Bank, Trent, and Indian Hotels.
CHANDAN TAPARIA ANALYST-DERIVATIVES, MOTILAL OSWAL FINANCIAL SERVICES
Where is Nifty headed this week? Nifty has formed a bullish candle on weekly scale and registered highest weekly and second-highest daily close, which indicates bulls are dominating higher zones. The index respected its 61.80% retracement (21,515) of the recent entire move (21,137 to 22,126) and turned higher with the formation of higher top — higher bottom. Indicators are also giving bullish crossover in daily and weekly scales. Till it holds above 21,800, a fresh leg of the rally could be seen towards 22,201 and 22,500. Major support exists at 21,515-21,600.
What should traders do? India VIX turned lower from a recent high of 16.57, along with the rise in the Put-Call ratio as sustained Put writing is seen at 22,000. FII index long-short ratio turning higher from lower zones, with a positive stance in the global equity market, could keep the trend intact in the domestic market. Bullish setup is seen in auto, IT, CPSE, power and energy sectors. Positive setups are seen in Maruti, TVS Motor, Tata Motors, M&M, Persistent, Ambuja Cements, Adani Ports, Federal Bank, Trent and Indian Hotels.
AJIT MISHRA SVP-RESEARCH,
