Buy the dips in rail stocks, rally not over yet: Rupak De, LKP Securities

economictimes.indiatimes.com:

The rally in rail stocks seems to be far from over, with stocks like IRFC witnessing a 41% gain in the week. “Given the trend and momentum, the stocks in this space are experiencing increasing demand every single day. I believe this momentum might carry over in the short term, and dips would be bought into. So, consider dips to get into the stocks in the railway space,” says Rupak De, Senior Technical Analyst at LKP Securities. Edited excerpts:

Following the buying seen on Friday, how does the Nifty chart look like for monthly expiry ahead? How strong is the support at around the 21,300 level? Rupak De: Following a carnage on Wednesday, the bulls made a strong comeback on the last day of the week, taking Nifty back above the 21EMA.

In the short term, the index is likely to consolidate within the bands of 21500 and 21700. A decisive breakout on either side would confirm a directional move. Below 21500, the Nifty might drift down towards 21300/21000.

On the other hand, a decisive move above 21700 might induce a directional up move in the market.
The negative co-relation between Nifty Bank and Nifty IT was evident in the week. Do you see the tables changing as the selloff in HDFC Bank stock has been contained? Rupak De: During the week, Bank Nifty underperformed the Nifty, primarily due to HDFCBANK earnings, which dragged the Bank Nifty significantly.

However, the Nifty received support from IT stocks, mitigating the negative impact of the HDFCBANK fall. Going into the next week, the chemistry is likely to remain the same as HDFCBANK has not shown any urgency to reverse. Additionally, IT stocks ended the week with strength.