How to trade Nifty ahead of Q4 earnings season? Anand James shares pro tips

Anand James, Chief Market Strategist, Geojit Investment Services, is eyeing 23,050 and 22,650 as re-entry points for Nifty longs in the event of an extended period of consolidation, while a complete abandoning of the upside view warranted only on slippage past 22,522.

Edited excerpts from a chat:

Nifty posted a marginal gain during the week. Where do you see the index headed in the April month expiry? In the last 10 years, Nifty has seen 7 positive monthly gains in April.

While seasonality favours April, it needs to be acknowledged that we are entering the Q4 season on the heels of a solid up move in March. The counter-argument is that the recovery move of nearly 2% in March came after a 16% decline spread over five months since September. The quality of incoming earnings flow will decide how this will be weighed by investors. With this in perspective, we see the 23,800-24,200 as a supply zone, which will need time to see past and bring 24,857 as the short-term objective. Inability to clear 23800-24200 and unwillingness of 23300 to arrest declines during the consolidation thereof could lead to a decline. We prefer to continue eyeing 23050 and 22650 as re-entry points for longs in the event of an extended period of consolidation, while a complete abandonment of upside view warranted only on slippage past 22522.

Nifty Bank outperformed with around a 2% weekly gain. Do you think that banking stocks are geared up for a bigger rally ahead of the Q4 earnings season?

Nifty Bank registered a Doji candle on Friday, hinting