Data hints at bullish setup, Nifty headed for 23,560 & 23,890: Experts
technical charts and options data hint at a bullish setup. According to technical analysts, Nifty is expected to continue
its upward trajectory towards 23,560, followed by 23,890, with immediate support at 23,000. Analysts suggest Tata Motors,
UltraTech Cement, Sun Pharma, McDowell, UBL, ITC, Marico, HUL, Tata Consumer, and Lupin for short-term trading.
SHILPA ROUT, AVP — DERIVATIVES RESEARCH, PRABHUDAS LILLADHER
Where is the Nifty headed this week? Markets witnessed very strong whipsaws last week, with a massive correction that gave participants an unprecedented dip. However, ending the week with higher highs has restored hope among the Bulls. Options chain reflects strong immediate support at the 23,000 zone, indicating very aggressive Put writing.
Meanwhile, 24,000 Call writers are holding maximum positions. This suggests a broad trading range for the week, hinting at a bullish setup. FIIs’ longs continue to remain on the lower end, but a modest daily improvement is also encouraging for the Bulls, suggesting a short-covering rally is very likely.
What should investors do? Investors should wait to see how the market reacts to the formation of the government. If the 23,000-22,850 zone hold, then a move towards 23,600 and above could occur. The pharma and FMCG sectors have shown a breakout, with stocks like breweries particularly showing good momentum. Focusing on McDowell, UBL, ITC, Marico, and Godrej Consumer from the FMCG pack, and Granules, Metropolis, and Lupin from pharma can be observed on the long side,
